TD SYNNEX is gearing up to release its fourth-quarter fiscal 2023 financial results on Jan 9. The company expects revenues between $14 billion and $15 billion for the quarter. Analysts anticipate a decrease in quarterly revenues to $14.54 billion, a decline of 10.5% from the prior year. Additionally, TD SYNNEX projects non-GAAP earnings between $2.40 and $2.90 per share, with the consensus mark at $2.69, representing a 21.8% decrease from the year-ago quarter.
Earnings Performance
Trailing four quarterly results have seen TD SYNNEX beating the consensus estimate three times, with the average surprise being 7.8%. However, the company missed estimates on one occasion. This has been a significant factor for investors to consider while assessing the forthcoming quarterly results.
Factors Affecting Performance
The softening IT spending environment amid a weakening global economy, geopolitical issues, and online-commerce trends have likely impacted TD SYNNEX’s revenue. While weak demand for Endpoint Solutions and lower PC demand post-pandemic have played a role in revenue reduction, the company’s Advanced Solutions portfolio and cloud-related technologies might have mitigated the decline.
Additionally, TD SYNNEX’s data center servers and storage solution businesses are expected to have benefited from increased demand for cloud storage services, as the market adjusts to hybrid working trends. However, the higher interest rates could have adversely affected the company’s bottom line. In the previous quarter, non-GAAP earnings per share saw a 1.5% rise year over year due to a higher-margin high-growth portfolio, counteracted by lower revenues and elevated interest expenses.
Insights and Projections
Despite historical data suggesting TD SYNNEX may not surpass earnings estimates this season, some companies like Netflix, ASML Holding, and CACI International are expected to outperform. Netflix, for instance, anticipates robust growth in earnings and revenue, with a Zacks Rank #2 and an Earnings ESP of +5.75%.
Earnings Calendar and Opportunities
Investors are advised to keep a close watch on upcoming earnings announcements using the Zacks Earnings Calendar, while also considering the potential opportunities that can arise amidst the market fluctuations.