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SNX Expands Its Partner Base With LastPass: What Should Investors Do?
TD SYNNEX TD SYNNEX (US:SNX) ZACKSยท2024-12-04 18:26

Core Viewpoint - TD SYNNEX has experienced a year-to-date share price increase of 13.7%, which is lower than the growth of the Zacks Computer and Technology Sector at 30.6% and the S&P 500 index at 27.1% [1] Partnerships and Expansion - Recently, TD SYNNEX partnered with LastPass to enhance the accessibility of its password and identity management products for IT resellers and managed service providers in North America [2] - The company has strengthened partnerships with industry leaders such as IBM, Cisco, Elastic, and Amazon, including becoming the authorized distributor for Elastic in Australia and New Zealand [3] - TD SYNNEX is now IBM's sole distribution partner in the English and Dutch Caribbean and has received the Amazon Relational Database Service Services Delivery Specialization designation [4] Financial Performance and Challenges - The company is facing near-term growth challenges due to reduced IT spending as organizations delay investments amid global economic slowdown concerns [6] - Increased inflationary pressures have led to higher component costs and wages, negatively impacting profitability, with long-term debt rising to $3.74 billion as of August 31, 2024, from $965 million in November 2016 [7] - Major operations in China are also affected by the U.S.-China trade war, with expected revenues for Q4 2024 projected between $14.9 billion and $15.7 billion, and a Zacks Consensus Estimate of $15.3 billion indicating a year-over-year growth of 6% [8] Earnings Outlook - The Zacks Consensus Estimate for fourth-quarter earnings is projected at $3.13, reflecting a year-over-year decline of 2.24% [9]