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For the fiscal third quarter, TD SYNNEX expects revenues between $13.3 billion and $14.9 billion. The Zacks Consensus Estimate for quarterly revenues is pegged at $14.12 billion, indicating an increase of 1.1% from the prior-year period.
SNX projects fiscal third-quarter non-GAAP earnings per share between $2.55 and $3.05. The consensus mark of $2.80 for quarterly earnings suggests a year-over-year increase of approximately 0.7% from the year-ago quarter’s $2.78.
The company’s earnings surpassed the Zacks Consensus Estimate thrice in the trailing four quarters while missing on one occasion, the average surprise being 8.1%.
TD SYNNEX’s fiscal third-quarter revenues are likely to have been affected by softening IT spending as enterprises are postponing large IT expenditures due to a weakening global economy amid ongoing macroeconomic and geopolitical issues.
Sluggish demand for SNX’s Endpoint Solutions amid softness in PC demand might have hurt its fiscal third-quarter performance. Nevertheless, improving sales across the Advanced Solutions portfolio and high-growth technologies, with demand driven by cloud and data center-related technologies, are expected to have partially offset the softness in Endpoint Solutions sales.
The momentum in online and e-commerce services, along with the positive hybrid working trend, has been stoking the demand for SNX’s cloud storage division. Therefore, data center operators are enhancing their capacities to accommodate the demand spike for cloud services. Moreover, SNX is banking on the growth in data center and cloud deployment driven by PC refresh cycles. These factors are likely to have aided SNX’s data center servers and storage solution businesses in the fiscal third quarter.
Nevertheless, interest rates remained elevated throughout the quarter before the recent rate cuts. These higher rates might have affected SNX's bottom line in the to-be-reported quarter.
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, CarMax (KMX - Free Report) , Accenture (ACN - Free Report) and Costco Wholesale (COST - Free Report) have the right combination of elements to post an earnings beat in their upcoming releases.
CarMax’s earnings beat the Zacks Consensus Estimate twice in the trailing four quarters while missing on one occasion and matching once, the average negative surprise being 1.78%.
The Zacks Consensus Estimate for KMX’s fiscal first-quarter earnings is pegged at 85 cents per share, suggesting a robust improvement from the year-ago quarter’s earnings of 75 cents. CarMax’s quarterly revenues are estimated to decrease 3.5% year over year to $6.82 billion.
Accenture is slated to report third-quarter fiscal 2024 results on Sept. 26. The company carries a Zacks Rank #2 and has an Earnings ESP of +0.04% at present. Accenture’s earnings beat the Zacks Consensus Estimate thrice in the trailing four quarters while missing on one occasion, the average surprise being 2.85%.
The Zacks Consensus Estimate for ACN’s third-quarter earnings is pegged at $2.77 per share, suggesting an improvement from the year-ago quarter’s earnings of $2.71. ACN’s quarterly revenues are estimated to increase 2.17% year over year to $16.33 billion.
Costco is scheduled to report fourth-quarter fiscal 2024 results on Sept. 26. The company carries a Zacks Rank #3 and has an Earnings ESP of +0.62% at present. Its earnings surpassed the Zacks Consensus Estimate in each of the trailing four quarters, the average surprise being 2.32%.
The Zacks Consensus Estimate for COST’s fiscal fourth-quarter earnings is pegged at $5.04 per share, indicating a year-over-year increase of 3.7%. The consensus mark for revenues is pegged at $79.82 billion, suggesting a year-over-year rise of 1.12%.
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TD SYNNEX Gears Up to Report Q3 Earnings: What's in the Offing?
TD SYNNEX (SNX - Free Report) is scheduled to report third-quarter fiscal 2024 results on Sept. 26.
For the fiscal third quarter, TD SYNNEX expects revenues between $13.3 billion and $14.9 billion. The Zacks Consensus Estimate for quarterly revenues is pegged at $14.12 billion, indicating an increase of 1.1% from the prior-year period.
SNX projects fiscal third-quarter non-GAAP earnings per share between $2.55 and $3.05. The consensus mark of $2.80 for quarterly earnings suggests a year-over-year increase of approximately 0.7% from the year-ago quarter’s $2.78.
The company’s earnings surpassed the Zacks Consensus Estimate thrice in the trailing four quarters while missing on one occasion, the average surprise being 8.1%.
TD SYNNEX Corporation Price and EPS Surprise
TD SYNNEX Corporation price-eps-surprise | TD SYNNEX Corporation Quote
Factors at Play
TD SYNNEX’s fiscal third-quarter revenues are likely to have been affected by softening IT spending as enterprises are postponing large IT expenditures due to a weakening global economy amid ongoing macroeconomic and geopolitical issues.
Sluggish demand for SNX’s Endpoint Solutions amid softness in PC demand might have hurt its fiscal third-quarter performance. Nevertheless, improving sales across the Advanced Solutions portfolio and high-growth technologies, with demand driven by cloud and data center-related technologies, are expected to have partially offset the softness in Endpoint Solutions sales.
The momentum in online and e-commerce services, along with the positive hybrid working trend, has been stoking the demand for SNX’s cloud storage division. Therefore, data center operators are enhancing their capacities to accommodate the demand spike for cloud services. Moreover, SNX is banking on the growth in data center and cloud deployment driven by PC refresh cycles. These factors are likely to have aided SNX’s data center servers and storage solution businesses in the fiscal third quarter.
Nevertheless, interest rates remained elevated throughout the quarter before the recent rate cuts. These higher rates might have affected SNX's bottom line in the to-be-reported quarter.
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, CarMax (KMX - Free Report) , Accenture (ACN - Free Report) and Costco Wholesale (COST - Free Report) have the right combination of elements to post an earnings beat in their upcoming releases.
CarMax is slated to report first-quarter fiscal 2025 results on Sept. 26. The company has a Zacks Rank #3 and an Earnings ESP of +0.98% at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
CarMax’s earnings beat the Zacks Consensus Estimate twice in the trailing four quarters while missing on one occasion and matching once, the average negative surprise being 1.78%.
The Zacks Consensus Estimate for KMX’s fiscal first-quarter earnings is pegged at 85 cents per share, suggesting a robust improvement from the year-ago quarter’s earnings of 75 cents. CarMax’s quarterly revenues are estimated to decrease 3.5% year over year to $6.82 billion.
Accenture is slated to report third-quarter fiscal 2024 results on Sept. 26. The company carries a Zacks Rank #2 and has an Earnings ESP of +0.04% at present. Accenture’s earnings beat the Zacks Consensus Estimate thrice in the trailing four quarters while missing on one occasion, the average surprise being 2.85%.
The Zacks Consensus Estimate for ACN’s third-quarter earnings is pegged at $2.77 per share, suggesting an improvement from the year-ago quarter’s earnings of $2.71. ACN’s quarterly revenues are estimated to increase 2.17% year over year to $16.33 billion.
Costco is scheduled to report fourth-quarter fiscal 2024 results on Sept. 26. The company carries a Zacks Rank #3 and has an Earnings ESP of +0.62% at present. Its earnings surpassed the Zacks Consensus Estimate in each of the trailing four quarters, the average surprise being 2.32%.
The Zacks Consensus Estimate for COST’s fiscal fourth-quarter earnings is pegged at $5.04 per share, indicating a year-over-year increase of 3.7%. The consensus mark for revenues is pegged at $79.82 billion, suggesting a year-over-year rise of 1.12%.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.