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Don't Overlook TD SYNNEX (SNX) International Revenue Trends While Assessing the Stock
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Have you evaluated the performance of TD SYNNEX's (SNX - Free Report) international operations for the quarter ending August 2024? Given the extensive global presence of this high-tech contractor, analyzing the patterns in international revenues is crucial for understanding its financial strength and potential for growth.
In the current global economy, which is more interconnected than ever, a company's success in penetrating international markets is crucial for its financial health and growth journey. Investors must understand a company's dependence on overseas markets, as this offers a window into the company's earnings stability, its ability to benefit from varied economic cycles and its potential for long-term growth.
Being present in foreign markets serves as protection against local economic declines and helps benefit from more rapidly expanding economies. Yet, such expansion also introduces challenges related to currency fluctuations, geopolitical uncertainties and varied market behaviors.
While delving into SNX's performance for the past quarter, we observed some fascinating trends in the revenue from its foreign segments that are commonly modeled and observed by analysts on Wall Street.
For the quarter, the company's total revenue amounted to $14.68 billion, experiencing an increase of 5.2% year over year. Next, we'll explore the breakdown of SNX's international revenue to understand the importance of its overseas business operations.
Exploring SNX's International Revenue Patterns
During the quarter, Europe contributed $4.59 billion in revenue, making up 31.3% of the total revenue. When compared to the consensus estimate of $4.32 billion, this meant a surprise of +6.32%. Looking back, Europe contributed $4.43 billion, or 31.7%, in the previous quarter, and $4.23 billion, or 30.3%, in the same quarter of the previous year.
Asia-Pacific and Japan generated $1 billion in revenues for the company in the last quarter, constituting 6.8% of the total. This represented a surprise of +14.64% compared to the $875.38 million projected by Wall Street analysts. Comparatively, in the previous quarter, Asia-Pacific and Japan accounted for $963.56 million (6.9%), and in the year-ago quarter, it contributed $853.4 million (6.1%) to the total revenue.
International Revenue Predictions
The current fiscal quarter's total revenue for TD SYNNEX, as projected by Wall Street analysts, is expected to reach $15.26 billion, reflecting an increase of 5.9% from the same quarter last year. The breakdown of this revenue by foreign region is as follows: Europe is anticipated to contribute 35.9% or $5.47 billion and Asia-Pacific and Japan 5.9% or $897.41 million.
For the entire year, the company's total revenue is forecasted to be $57.17 billion, which is a reduction of 0.7% from the previous year. The revenue contributions from different regions are expected as follows: Europe will contribute 33.8% ($19.34 billion) and Asia-Pacific and Japan 6.5% ($3.69 billion) to the total revenue.
Concluding Remarks
TD SYNNEX's leaning on foreign markets for its revenue stream presents a mix of chances and challenges. Therefore, a vigilant watch on its international revenue movements can greatly aid in projecting the company's future direction.
In a world where international interdependencies and geopolitical conflicts are ever-increasing, Wall Street analysts closely monitor these trends for companies having international presence to adjust their earnings forecasts. Of course, there are several other factors, including a company's standing within its home borders, that influence analysts' earnings forecasts.
Here at Zacks, we put a great deal of emphasis on a company's changing earnings outlook, as empirical research has shown that's a powerful force driving a stock's near-term price performance. Quite naturally, the correlation is positive here -- an upward revision in earnings estimates drives the stock price higher.
Boasting a remarkable track record that's been externally verified, the Zacks Rank, our unique stock rating system, leverages changes in earnings projections to function as a reliable gauge for predicting short-term stock price movements.
Exploring Recent Trends in TD SYNNEX's Stock Price
The stock has declined by 1.4% over the past month compared to the 2.1% rise of the Zacks S&P 500 composite. Meanwhile, the Zacks Computer and Technology sector, which includes TD SYNNEX, has increased 1.8% during this time frame. Over the past three months, the company's shares have experienced a gain of 9.1% relative to the S&P 500's 4.9% increase. Throughout this period, the sector overall has witnessed a 1% decrease.
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Don't Overlook TD SYNNEX (SNX) International Revenue Trends While Assessing the Stock
Have you evaluated the performance of TD SYNNEX's (SNX - Free Report) international operations for the quarter ending August 2024? Given the extensive global presence of this high-tech contractor, analyzing the patterns in international revenues is crucial for understanding its financial strength and potential for growth.
In the current global economy, which is more interconnected than ever, a company's success in penetrating international markets is crucial for its financial health and growth journey. Investors must understand a company's dependence on overseas markets, as this offers a window into the company's earnings stability, its ability to benefit from varied economic cycles and its potential for long-term growth.
Being present in foreign markets serves as protection against local economic declines and helps benefit from more rapidly expanding economies. Yet, such expansion also introduces challenges related to currency fluctuations, geopolitical uncertainties and varied market behaviors.
While delving into SNX's performance for the past quarter, we observed some fascinating trends in the revenue from its foreign segments that are commonly modeled and observed by analysts on Wall Street.
For the quarter, the company's total revenue amounted to $14.68 billion, experiencing an increase of 5.2% year over year. Next, we'll explore the breakdown of SNX's international revenue to understand the importance of its overseas business operations.
Exploring SNX's International Revenue Patterns
During the quarter, Europe contributed $4.59 billion in revenue, making up 31.3% of the total revenue. When compared to the consensus estimate of $4.32 billion, this meant a surprise of +6.32%. Looking back, Europe contributed $4.43 billion, or 31.7%, in the previous quarter, and $4.23 billion, or 30.3%, in the same quarter of the previous year.
Asia-Pacific and Japan generated $1 billion in revenues for the company in the last quarter, constituting 6.8% of the total. This represented a surprise of +14.64% compared to the $875.38 million projected by Wall Street analysts. Comparatively, in the previous quarter, Asia-Pacific and Japan accounted for $963.56 million (6.9%), and in the year-ago quarter, it contributed $853.4 million (6.1%) to the total revenue.
International Revenue Predictions
The current fiscal quarter's total revenue for TD SYNNEX, as projected by Wall Street analysts, is expected to reach $15.26 billion, reflecting an increase of 5.9% from the same quarter last year. The breakdown of this revenue by foreign region is as follows: Europe is anticipated to contribute 35.9% or $5.47 billion and Asia-Pacific and Japan 5.9% or $897.41 million.For the entire year, the company's total revenue is forecasted to be $57.17 billion, which is a reduction of 0.7% from the previous year. The revenue contributions from different regions are expected as follows: Europe will contribute 33.8% ($19.34 billion) and Asia-Pacific and Japan 6.5% ($3.69 billion) to the total revenue.
Concluding Remarks
TD SYNNEX's leaning on foreign markets for its revenue stream presents a mix of chances and challenges. Therefore, a vigilant watch on its international revenue movements can greatly aid in projecting the company's future direction.In a world where international interdependencies and geopolitical conflicts are ever-increasing, Wall Street analysts closely monitor these trends for companies having international presence to adjust their earnings forecasts. Of course, there are several other factors, including a company's standing within its home borders, that influence analysts' earnings forecasts.
Here at Zacks, we put a great deal of emphasis on a company's changing earnings outlook, as empirical research has shown that's a powerful force driving a stock's near-term price performance. Quite naturally, the correlation is positive here -- an upward revision in earnings estimates drives the stock price higher.
Boasting a remarkable track record that's been externally verified, the Zacks Rank, our unique stock rating system, leverages changes in earnings projections to function as a reliable gauge for predicting short-term stock price movements.
TD SYNNEX currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
Exploring Recent Trends in TD SYNNEX's Stock Price
The stock has declined by 1.4% over the past month compared to the 2.1% rise of the Zacks S&P 500 composite. Meanwhile, the Zacks Computer and Technology sector, which includes TD SYNNEX, has increased 1.8% during this time frame. Over the past three months, the company's shares have experienced a gain of 9.1% relative to the S&P 500's 4.9% increase. Throughout this period, the sector overall has witnessed a 1% decrease.