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TD SYNNEX (SNX) Q1 Earnings Beat, Revenues Miss Estimates
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TD SYNNEX (SNX - Free Report) reported first-quarter fiscal 2023 non-GAAP earnings of $2.93 per share, which surpassed the Zacks Consensus Estimate of $2.83 per share but decreased 3.3% year over year. The decline in bottom line was primarily caused by increased interest expenses.
Revenues of $15.13 billion decreased 2% year over year and missed the consensus mark of $15.74 billion. Although the company continues to witness strong demand for its technology products and services across Asia-Pacific and Japan region (18.4% year-over-year growth), the remaining two regions, Americas and Europe, witnessed year-over-year decreases due to a mix shift to high-growth technologies.
Also, an unfavorable foreign currency exchange rate significantly impacted sales growth. On a constant-currency basis, first-quarter revenues increased merely 0.7%.
The non-GAAP gross profit grew 1.7% year over year to $1 billion, while the non-GAAP gross margin improved 30 basis points (bps) to 6.7%. Adjusted SG&A expenses increased to $568.1 million from the year-ago quarter’s $561.9 million.
In the reported quarter, the non-GAAP operating income was up 2.6% to $443 million. Moreover, the non-GAAP operating margin increased 14 bps on a year-over-year basis to 2.93%.
TD SYNNEX ended the fiscal first quarter with cash and cash equivalents of $510.2 million compared with $522.6 million witnessed at the end of the fiscal fourth quarter. During the reported quarter, SNX used $103 million in cash from operational activities.
The company returned $148 million to shareholders in the first quarter by repurchasing stocks worth $115 million and paying out $33 million in dividends.
SNX announced a quarterly cash dividend of 35 cents per share payable on Apr 28, 2023, to the shareholders of record on Apr 14, 2023.
Guidance
SNX issued dismal guidance for the second quarter of fiscal 2023. For the second quarter, it expects to generate revenues between $14 billion and $15 billion.
The non-GAAP net income is estimated in the range of $214-$261 million. Moreover, TD SYNNEX projects non-GAAP earnings between $2.25 and $2.75 per share for the second quarter.
Zacks Rank & Stocks to Consider
TD SYNNEX currently carries a Zacks Rank #3 (Hold). Shares of SNX dropped 13.5% in the past year.
The Zacks Consensus Estimate for Fabrinet's third-quarter fiscal 2023 earnings has been revised 7 cents upward to $1.90 per share over the past 60 days. For fiscal 2023, earnings estimates have moved north by 23 cents to $7.71 in the past 60 days.
FN’s earnings beat the Zacks Consensus Estimate in three of the trailing four quarters, missing once, the average surprise being 5.1%. Shares of the company have jumped 4.5% in the past year.
The Zacks Consensus Estimate for Airbnb’s first-quarter 2023 earnings has been revised northward from a loss of a penny to 14 cents per share over the past 60 days. For 2023, earnings estimates have moved up by 58 cents to $3.38 in the past 60 days.
ABNB's earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, the average surprise being 57.2%. Shares of the company have declined 33.6% in the past year.
The Zacks Consensus Estimate for Baidu’s first-quarter 2023 earnings has been revised 17 cents northward to $2.60 per share over the past 30 days. For 2023, earnings estimates have fell by 0.8% to $11.53 per share over the past 30 days.
BIDU’s earnings beat the Zacks Consensus Estimate in each of the preceding four quarters, the average surprise being 45.5%. Shares of the company have increased 8.3% in the past year.
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TD SYNNEX (SNX) Q1 Earnings Beat, Revenues Miss Estimates
TD SYNNEX (SNX - Free Report) reported first-quarter fiscal 2023 non-GAAP earnings of $2.93 per share, which surpassed the Zacks Consensus Estimate of $2.83 per share but decreased 3.3% year over year. The decline in bottom line was primarily caused by increased interest expenses.
Revenues of $15.13 billion decreased 2% year over year and missed the consensus mark of $15.74 billion. Although the company continues to witness strong demand for its technology products and services across Asia-Pacific and Japan region (18.4% year-over-year growth), the remaining two regions, Americas and Europe, witnessed year-over-year decreases due to a mix shift to high-growth technologies.
Also, an unfavorable foreign currency exchange rate significantly impacted sales growth. On a constant-currency basis, first-quarter revenues increased merely 0.7%.
TD SYNNEX Corp. Price, Consensus and EPS Surprise
TD SYNNEX Corp. price-consensus-eps-surprise-chart | TD SYNNEX Corp. Quote
Quarterly Details
The non-GAAP gross profit grew 1.7% year over year to $1 billion, while the non-GAAP gross margin improved 30 basis points (bps) to 6.7%. Adjusted SG&A expenses increased to $568.1 million from the year-ago quarter’s $561.9 million.
In the reported quarter, the non-GAAP operating income was up 2.6% to $443 million. Moreover, the non-GAAP operating margin increased 14 bps on a year-over-year basis to 2.93%.
TD SYNNEX ended the fiscal first quarter with cash and cash equivalents of $510.2 million compared with $522.6 million witnessed at the end of the fiscal fourth quarter. During the reported quarter, SNX used $103 million in cash from operational activities.
The company returned $148 million to shareholders in the first quarter by repurchasing stocks worth $115 million and paying out $33 million in dividends.
SNX announced a quarterly cash dividend of 35 cents per share payable on Apr 28, 2023, to the shareholders of record on Apr 14, 2023.
Guidance
SNX issued dismal guidance for the second quarter of fiscal 2023. For the second quarter, it expects to generate revenues between $14 billion and $15 billion.
The non-GAAP net income is estimated in the range of $214-$261 million. Moreover, TD SYNNEX projects non-GAAP earnings between $2.25 and $2.75 per share for the second quarter.
Zacks Rank & Stocks to Consider
TD SYNNEX currently carries a Zacks Rank #3 (Hold). Shares of SNX dropped 13.5% in the past year.
Some better-ranked stocks from the broader Computer and Technology sector are Airbnb (ABNB - Free Report) , Baidu (BIDU - Free Report) and Fabrinet (FN - Free Report) . While Fabrinet sports a Zacks Rank #1 (Strong Buy), Airbnb and Baidu carry a Zacks Rank #2 (Buy) at present. You can see the complete list of today's Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Fabrinet's third-quarter fiscal 2023 earnings has been revised 7 cents upward to $1.90 per share over the past 60 days. For fiscal 2023, earnings estimates have moved north by 23 cents to $7.71 in the past 60 days.
FN’s earnings beat the Zacks Consensus Estimate in three of the trailing four quarters, missing once, the average surprise being 5.1%. Shares of the company have jumped 4.5% in the past year.
The Zacks Consensus Estimate for Airbnb’s first-quarter 2023 earnings has been revised northward from a loss of a penny to 14 cents per share over the past 60 days. For 2023, earnings estimates have moved up by 58 cents to $3.38 in the past 60 days.
ABNB's earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, the average surprise being 57.2%. Shares of the company have declined 33.6% in the past year.
The Zacks Consensus Estimate for Baidu’s first-quarter 2023 earnings has been revised 17 cents northward to $2.60 per share over the past 30 days. For 2023, earnings estimates have fell by 0.8% to $11.53 per share over the past 30 days.
BIDU’s earnings beat the Zacks Consensus Estimate in each of the preceding four quarters, the average surprise being 45.5%. Shares of the company have increased 8.3% in the past year.