TD SYNNEX (SNX) to Report Q4 Earnings: What's in the Offing?
TD SYNNEX SNX is scheduled to report fourth-quarter fiscal 2023 results on Jan 9.
For the fiscal fourth quarter, TD SYNNEX expects revenues between $14 billion and $15 billion. The Zacks Consensus Estimate for quarterly revenues is pegged at $14.54 billion, indicating a 10.5% decrease from the prior-year period.
Moreover, SNX projects fiscal fourth-quarter non-GAAP earnings between $2.40 and $2.90 per share. The consensus mark of $2.69 for quarterly earnings suggests a year-over-year decrease of approximately 21.8% from the year-ago quarter’s $3.44 per share.
The company’s earnings surpassed the Zacks Consensus Estimate thrice in the trailing four quarters while missing on one occasion, the average surprise being 7.8%.
TD SYNNEX Corporation Price and EPS Surprise
TD SYNNEX Corporation price-eps-surprise | TD SYNNEX Corporation Quote
Factors at Play
TD SYNNEX’s fourth-quarter revenues are likely to have been negatively impacted by softening IT spending as enterprises are postponing large IT spending plans due to a weakening global economy amid ongoing macroeconomic and geopolitical issues.
Weak demand for the company’s Endpoint Solutions amid softness in PC demand post-pandemic might have hurt its fourth-quarter performance. However, increasing sales across the Advanced Solutions portfolio and high-growth technologies, with demand driven by cloud and data center-related technologies, are anticipated to have partially offset the softness in Endpoint Solutions sales.
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 SNX’s data center servers and storage solution businesses in the fiscal fourth quarter.
The higher interest rate is expected to have negatively impacted TD SYNNEX’s bottom-line performance. The company’s third-quarter non-GAAP earnings per share increased 1.5% year over year, primarily driven by a greater mix of higher-margin high-growth portfolio, partially offset by lower revenues and a $16 million headwind from higher interest expenses.
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.
SNX currently carries a Zacks Rank #3 and has an Earnings ESP of 0.00%. 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, Netflix NFLX, ASML Holding ASML and CACI International CACI have the right combination of elements to post an earnings beat in their upcoming releases.
Netflix is slated to report fourth-quarter 2023 results on Jan 23. The company has a Zacks Rank #2 and an Earnings ESP of +5.75% at present. Netflix’s earnings beat the Zacks Consensus Estimate thrice in the trailing four quarters while missing on one occasion, the average surprise being -12.2%. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for NFLX’s fourth-quarter earnings is pegged at $2.19 per share, suggesting a robust improvement from the year-ago quarter’s earnings of 12 cents. Netflix’s quarterly revenues are estimated to increase 11% year over year to $8.71 billion.
ASML Holding carries a Zacks Rank #2 and has an Earnings ESP of +3.46%. The company is scheduled to report fourth-quarter 2023 results on Jan 24. Its earnings beat the Zacks Consensus Estimate in the preceding four quarters, the average surprise being 7.5%.
The Zacks Consensus Estimate for ASML Holding’s fourth-quarter earnings stands at $5.08 per share, implying a year-over-year increase of 8.1%. It is estimated to report revenues of $7.34 billion, which suggests an increase of approximately 11.8% from the year-ago quarter.
CACI carries a Zacks Rank #2 and has an Earnings ESP of +0.15%. The company is expected to report second-quarter fiscal 2024 results on Jan 24. Its earnings surpassed the Zacks Consensus Estimate twice in the trailing four quarters while missing on two occasions, the average surprise being 2.5%.
The Zacks Consensus Estimate for CACI’s second-quarter earnings is pegged at $4.50 per share, indicating a year-over-year increase of 5.1%. The consensus mark for revenues stands at $1.83 billion, suggesting a year-over-year rise of 11.1%.
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Netflix, Inc. (NFLX) : Free Stock Analysis Report
ASML Holding N.V. (ASML) : Free Stock Analysis Report
TD SYNNEX Corporation (SNX) : Free Stock Analysis Report
CACI International, Inc. (CACI) : Free Stock Analysis Report
