- Adjusted EPS Miss: TD SYNNEX reported adjusted earnings per share (EPS) of $2.73, missing estimates of $2.82. However, this is an increase from $2.43 year-over-year (y/y).
- Revenue Slight Decline: Revenue stood at $13.95 billion, a 0.8% decrease y/y. This fell short of the $14.1 billion estimate.
- Adjusted EBITDA: Adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) increased by 3.6% y/y to $416.5 million, beating the $413.5 million estimate.
- Adjusted Operating Margin: The adjusted operating margin was 2.78%, up from 2.67% y/y and slightly above the estimate of 2.77%.
- Third Quarter Forecast: For the next quarter, TD SYNNEX forecasts:
- Adjusted EPS between $2.55 to $3.05 (estimate $2.88)
- Revenue between $13.3 billion to $14.9 billion (estimate $14.5 billion)
- Positive Comments: CEO Rich Hume stated that the company saw an improving IT spending environment, with growth in their core business in both Endpoint and Advanced Solutions, as well as mid-teens growth in Strategic Technologies.
- Analyst Ratings: The company currently has 8 buy ratings, 4 hold ratings, and 0 sell ratings.
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A look at Synnex Corp Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 4 | |
| Dividend | 2 | |
| Growth | 3 | |
| Resilience | 3 | |
| Momentum | 5 | |
| OVERALL SMART SCORE | 3.4 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
SYNNEX Corp, a leading provider of information technology supply chain services, is poised for a promising long-term outlook based on its Smartkarma Smart Scores. With a solid Value score of 4, the company demonstrates attractive fundamentals and potential for growth. While its Dividend score of 2 may not be the strongest indicator, Synnex Corp shines in Momentum with a top-notch score of 5, showcasing strong upward trends. Additionally, a Growth score of 3 underscores the company’s potential for expansion, supported by a Resilience score of 3, indicating stability amidst market fluctuations.
In summary, SYNNEX Corporation’s overall outlook appears positive, buoyed by its competitive positioning in the IT supply chain sector. Combining robust value metrics, strong momentum, and growth potential, Synnex Corp‘s strategic focus on providing services to OEMs and software publishers globally positions it well for long-term success in a dynamic market environment.
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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