TD SYNNEX Gears Up to Report Q3 Earnings: What's in the Offing?

Core Viewpoint - TD SYNNEX is expected to report third-quarter fiscal 2024 results on September 26, with projected revenues and earnings reflecting slight year-over-year growth despite challenges in the IT spending environment [1][2]. Revenue Expectations - For the fiscal third quarter, TD SYNNEX anticipates revenues between $13.3 billion and $14.9 billion, with the Zacks Consensus Estimate at $14.12 billion, indicating a 1.1% increase from the previous year [1]. - The company has experienced fluctuations in revenue performance, with a noted impact from softening IT spending due to a weakening global economy [3]. Earnings Projections - The projected non-GAAP earnings per share for the fiscal third quarter is between $2.55 and $3.05, with a consensus estimate of $2.80, suggesting a year-over-year increase of approximately 0.7% from $2.78 [2]. - TD SYNNEX has surpassed the Zacks Consensus Estimate in three of the last four quarters, with an average surprise of 8.1% [2]. Market Factors - The company's performance may be affected by sluggish demand for Endpoint Solutions amid declining PC demand, although growth in Advanced Solutions and high-growth technologies is expected to partially offset this decline [4]. - The demand for cloud storage services is increasing due to the momentum in online and e-commerce services, which is benefiting SNX's data center and cloud deployment efforts [5]. Economic Environment - Elevated interest rates throughout the quarter may have negatively impacted the company's bottom line, although recent rate cuts could provide some relief [6]. Earnings Prediction Model - Current analysis indicates that the model does not predict a definitive earnings beat for TD SYNNEX, as it holds a Zacks Rank 3 and an Earnings ESP of 0.00% [7].