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TD SYNNEX (SNX) to Report Q1 Earnings: What's in the Offing?

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TD SYNNEX SNX is scheduled to release first-quarter fiscal 2022 results on Mar 24.

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

For the fiscal first quarter, the company expects revenues between $14.75 billion and $15.75 billion. The Zacks Consensus Estimate for quarterly revenues is pegged at $15.28 billion, indicating a whopping 209.3% increase from the prior-year period.

Moreover, SNX projects fiscal first-quarter non-GAAP earnings between $2.55 and $2.85 per share. The consensus mark of $2.74 for quarterly earnings suggests a year-over-year increase of approximately 45% from the year-ago quarter’s $1.89 per share.

The company’s earnings surpassed the Zacks Consensus Estimate in each of the trailing four quarters, the average surprise being 8.3%.

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 Note Ahead of Q1 Earnings

TD SYNNEX’s fiscal first-quarter performance is likely to have benefited from the steady IT spending environment due to rapid digital transformation. The year-over-year expected increase in the top line suggests revenues from the newly merged Tech Data Corporation business.

Increased demand for hardware and tools, which support remote working, is anticipated to have boosted TD SYNNEX’s revenues during the quarter under review. The pandemic-induced work-and-learn-from-home wave has been driving sales of peripherals, software, communication, networking and consumer electronics products. This impressive demand trend is likely to have been conducive to SNX’s top line during the fiscal first quarter.

Additionally, the lockdown has bolstered the usage of online and e-commerce services globally. Also, the work-and-learn-from-home necessity has been stoking demand for cloud storage. Therefore, data center operators are enhancing their capacities to accommodate the demand spike for cloud services, which is likely to have aided TD SYNNEX’s data center servers and storage solution businesses during the fiscal first quarter.

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, Dave & Buster's Entertainment PLAY, Washington Federal WAFD and Fastenal FAST have the right combination of elements to post an earnings beat in their upcoming releases.

Dave & Buster's Entertainment is expected to report fourth-quarter fiscal 2022 results on Mar 30. The company sports a Zacks Rank #1 and has an Earnings ESP of +5.93% at present. Dave & Buster's Entertainment’s earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, the average surprise being 218.3%. You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for quarterly earnings is pegged at 59 cents per share, suggesting a strong improvement from the year-ago quarter’s loss of $1.19. PLAY’s quarterly revenues are estimated to increase 214.2% year over year to $367.1 million.

Washington Federal carries a Zacks Rank #2 and has an Earnings ESP of +0.72%. The company is expected to report second-quarter 2022 results on Apr 12. Washington Federal’s earnings surpassed the Zacks Consensus Estimate in the trailing four quarters, the average surprise being 12.2%.

The Zacks Consensus Estimate for WAFD’s second-quarter earnings is pegged at 70 cents per share, indicating year-over-year growth of 25%. The consensus mark for revenues stands at $148.8 million, suggesting a year-over-year increase of 7.4%.

Fastenal currently carries a Zacks Rank #2 and has an Earnings ESP of +0.46%. The company is slated to report its first-quarter 2022 results on Apr 13. Fastenal’s earnings beat the Zacks Consensus Estimate thrice in the preceding four quarters while matching the same on one occasion, the average surprise being 3.3%.

The Zacks Consensus Estimate for Fastenal’s first-quarter earnings stands at 44 cents per share, implying a year-over-year increase of 18.9%. FAST is estimated to report revenues of $1.67 billion, which suggests growth of 17.9% from the year-ago quarter.

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


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Fastenal Company (FAST) : Free Stock Analysis Report

TD SYNNEX Corp. (SNX) : Free Stock Analysis Report

Washington Federal, Inc. (WAFD) : Free Stock Analysis Report

Dave & Buster's Entertainment, Inc. (PLAY) : Free Stock Analysis Report

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