Russ Cohen

Anticipating TD SYNNEX (SNX) Q4 Earnings Anticipating TD SYNNEX (SNX) Q4 Earnings

TD SYNNEX SNX is expected to announce its fourth-quarter fiscal 2023 results on Jan 9.

Projections indicate that TD SYNNEX anticipates revenues ranging from $14 billion to $15 billion for the fiscal fourth quarter. Market consensus estimates the quarterly revenues to be around $14.54 billion, signifying a drop of 10.5% compared to the prior-year period.

Additionally, SNX forecasts non-GAAP earnings between $2.40 and $2.90 per share for the fiscal fourth quarter. The consensus estimate of $2.69 for quarterly earnings suggests a year-over-year decrease of about 21.8% from the year-ago quarter’s $3.44 per share.

While the company’s earnings exceeded the Zacks Consensus Estimate thrice in the trailing four quarters, there was one instance of falling short, with an average surprise of 7.8%.

Factors at Play

TD SYNNEX’s fourth-quarter revenues may have been negatively impacted by reduced IT spending, stemming from enterprises postponing major IT expenditure due to a weak global economy amid prevailing macroeconomic and geopolitical challenges.

The diminishing demand for the company’s Endpoint Solutions, following the softness in PC demand post-pandemic, might have adversely affected its fourth-quarter performance. However, rising sales across the Advanced Solutions portfolio and high-growth technologies, driven by cloud and data center-related technologies, are expected to have mitigated the softness in Endpoint Solutions sales to a certain extent.

The surge in online and e-commerce services usage, coupled with the hybrid working trend, has led to an increased demand for cloud storage. Consequently, data center operators are expanding their capacities to accommodate the spike in demand for cloud services. This is likely to have supported SNX’s data center servers and storage solution businesses in the fiscal fourth quarter.

It is anticipated that the higher interest rate might have adversely affected TD SYNNEX’s bottom-line performance. In the third quarter, the company’s non-GAAP earnings per share increased by 1.5% year over year, largely propelled by a greater mix of higher-margin high-growth portfolio, partially offset by lower revenues and a $16 million headwind from increased interest expenses.

Prognostication with Caution

Our model provides no definitive forecast for 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) raises the likelihood of an earnings beat. Unfortunately, this is not the case here.

SNX currently holds a Zacks Rank #3 and has an Earnings ESP of 0.00%. You can explore the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Stocks With the Right Mix

According to our model, Netflix NFLX, ASML Holding ASML, and CACI International CACI possess the correct blend of elements to possibly achieve an earnings beat in their forthcoming releases.

Netflix is scheduled to unveil its fourth-quarter 2023 results on Jan 23. The company currently holds a Zacks Rank #2 and an Earnings ESP of +5.75%. Netflix’s earnings surpassed the Zacks Consensus Estimate thrice in the trailing four quarters while falling short on one occasion, with the average surprise being -12.2%. You can view the complete list of today’s Zacks #1 Rank stocks here.

See also  New Regulations and the Battle Against "Forever Chemicals"New Regulations and the Battle Against "Forever Chemicals"

The Zacks Consensus Estimate for NFLX’s fourth-quarter earnings is set at $2.19 per share, indicating a substantial improvement from the year-ago quarter’s earnings of 12 cents. The company’s quarterly revenues are estimated to climb by 11% year over year to $8.71 billion.

ASML Holding holds a Zacks Rank #2 and has an Earnings ESP of +3.46%. The company is slated to disclose its fourth-quarter 2023 results on Jan 24. Its earnings exceeded the Zacks Consensus Estimate in the preceding four quarters, with an average surprise of 7.5%.

The Zacks Consensus Estimate for ASML Holding’s fourth-quarter earnings is projected to be $5.08 per share, indicating a year-over-year increase of 8.1%. The company is expected to report revenues of $7.34 billion, reflecting an increase of around 11.8% from the year-ago quarter.

CACI carries a Zacks Rank #2 and an Earnings ESP of +0.15%. The company is projected to announce second-quarter fiscal 2024 results on Jan 24. Its earnings exceeded the Zacks Consensus Estimate twice in the trailing four quarters, while missing expectations twice, resulting in an average surprise of 2.5%.

The Zacks Consensus Estimate for CACI’s second-quarter earnings is estimated 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 uptick of 11.1%.

Stay updated on upcoming earnings announcements with the Zacks Earnings Calendar.

Just Released: Zacks Top 10 Stocks for 2024

Don’t miss out on our top 10 stocks for 2024. Curated by Zacks Director of Research, Sheraz Mian, this portfolio has attained remarkable and consistent success. Since its inception in 2012 through November 2023, the Zacks Top 10 Stocks gained +974.1%, almost tripling the S&P 500’s +340.1% performance. Sheraz has meticulously handpicked the best 10 stocks to buy and hold in 2024. Be among the first to explore these newly released stocks with monumental potential.

See New Top 10 Stocks >>

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

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

To read this article on Zacks.com click here.

Zacks Investment Research