U.S. markets closed
  • S&P 500

    4,071.70
    -4.87 (-0.12%)
     
  • Dow 30

    34,429.88
    +34.87 (+0.10%)
     
  • Nasdaq

    11,461.50
    -20.95 (-0.18%)
     
  • Russell 2000

    1,892.84
    +11.16 (+0.59%)
     
  • Crude Oil

    80.34
    -0.88 (-1.08%)
     
  • Gold

    1,797.30
    -3.80 (-0.21%)
     
  • Silver

    23.35
    +0.51 (+2.25%)
     
  • EUR/USD

    1.0531
    +0.0002 (+0.02%)
     
  • 10-Yr Bond

    3.5060
    -0.0230 (-0.65%)
     
  • GBP/USD

    1.2296
    +0.0040 (+0.33%)
     
  • USD/JPY

    134.2710
    -1.0350 (-0.76%)
     
  • BTC-USD

    17,034.03
    +105.73 (+0.62%)
     
  • CMC Crypto 200

    404.33
    +2.91 (+0.72%)
     
  • FTSE 100

    7,556.23
    -2.26 (-0.03%)
     
  • Nikkei 225

    27,777.90
    -448.18 (-1.59%)
     

Key Factors to Note Ahead of TD SYNNEX's (SNX) Q3 Earnings

TD SYNNEX SNX is scheduled to release third-quarter fiscal 2022 results on Sep 27.

TD SYNNEX was formerly known as SYNNEX Corporation. The company changed its name after the acquisition of Tech Data Corporation on Sep 1, 2021.

For the fiscal third quarter, the company expects revenues between $14.5 billion and $15.5 billion. The Zacks Consensus Estimate for quarterly revenues is pegged at $15.11 billion, indicating a whopping 190.2% increase from the prior-year period.

Moreover, SNX projects fiscal third-quarter non-GAAP earnings between $2.50 and $2.90 per share. The consensus mark of $2.75 for quarterly earnings suggests a year-over-year increase of approximately 28.5% from the year-ago quarter’s $2.14 per share.

The company’s earnings surpassed the Zacks Consensus Estimate in each of the trailing four quarters, the average surprise being 6.8%.

TD SYNNEX Corp. Price and EPS Surprise

TD SYNNEX Corp. Price and EPS Surprise
TD SYNNEX Corp. Price and EPS Surprise

TD SYNNEX Corp. price-eps-surprise | TD SYNNEX Corp. Quote

Factors to Consider

The increased demand for hardware and tools, which support hybrid working, is anticipated to have boosted TD SYNNEX’s revenues during the quarter under review. The growing hybrid working trend has been driving the sales of peripherals, software, communication, networking and consumer electronic products. This impressive demand trend is likely to have been conducive to SNX’s top line in the fiscal third quarter.

The increased usage of online and e-commerce services, along with the hybrid working trend, has been stoking the demand for cloud storage. Therefore, data center operators are enhancing their capacities to accommodate the demand spike for cloud services. This is likely to have aided TD SYNNEX’s data center servers and storage solution businesses in the fiscal third quarter.

Additionally, TD SYNNEX’s fiscal third-quarter performance is likely to have benefited from revenue contributions from the newly merged Tech Data Corporation business. A steady IT spending environment due to rapid digital transformation is anticipated to have boosted the top line.

However, the positive impact of the aforementioned factors might have been partially offset by prevailing supply-chain disruptions caused by the pandemic. Foreign-exchange headwinds are expected to have been an added concern.

What Our Model Says

Our proven model does not conclusively predict an earnings beat for TD SYNNEX this season. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. However, that’s not the case here.

TD SYNNEX has an Earnings ESP of 0.00% and carries a Zacks Rank of 3 at present. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Stocks With the Favorable Combination

Per our model, Apple AAPL, Meta Platforms META and Lattice Semiconductor LSCC have the right combination of elements to post an earnings beat in their upcoming releases.

Apple is expected to report fourth-quarter fiscal 2022 results on Oct 27. The company carries a Zacks Rank #3 and has an Earnings ESP of +0.14% at present. Apple’s earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, the average surprise being 5.7%. You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for fourth-quarter earnings is pegged at $1.25 per share, suggesting an improvement of 0.8% from the year-ago quarter’s earnings of $1.24. AAPL’s quarterly revenues are estimated to increase 5.7% year over year to $88.09 billion.

Meta Platforms carries a Zacks Rank #3 and has an Earnings ESP of +5.85%. The company is anticipated to report third-quarter 2022 results on Oct 24. Meta Platforms’ earnings surpassed the Zacks Consensus Estimate twice in the trailing four quarters while missing the same on two occasions, the average surprise being 0.8%.

The Zacks Consensus Estimate for META’s third-quarter earnings is pegged at $1.94 per share, indicating a year-over-year decline of 39.8%. The consensus mark for revenues stands at $27.51 billion, suggesting a year-over-year decrease of 5.2%.

Lattice sports a Zacks Rank #1 and has an Earnings ESP of +0.46%. The company is anticipated to report its third-quarter 2022 results on Nov 1. Lattice’s earnings beat the Zacks Consensus Estimate in the preceding four quarters, the average surprise being 13.1%.

The Zacks Consensus Estimate for Lattice’s third-quarter earnings stands at 44 cents per share, implying a year-over-year increase of 57.1%. LSCC is estimated to report revenues of $166.1 million, which suggests growth of 25.9% from the year-ago quarter.

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.


Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
 
Apple Inc. (AAPL) : Free Stock Analysis Report
 
Lattice Semiconductor Corporation (LSCC) : Free Stock Analysis Report
 
TD SYNNEX Corp. (SNX) : Free Stock Analysis Report
 
Meta Platforms, Inc. (META) : Free Stock Analysis Report
 
To read this article on Zacks.com click here.
 
Zacks Investment Research