Tim Gray
TD SYNNEX (NYSE: SNX) reports fiscal earnings this Thursday morning, and analysts are watching closely after the IT distribution giant posted a strong prior quarter. Revenue came in at $17.16 billion last quarter, up 18.1% year over year, and the company beat estimates on both earnings per share and forward EPS guidance.
At a Glance
- Last quarter revenue: $17.16 billion, up 18.1% year over year
- This quarter consensus: 12.3% revenue growth expected year over year
- Analysts have largely held their estimates steady over the past 30 days
- SNX shares are up 23.4% over the past month, trading near $296.15
- Average analyst price target sits at $265.09, below the current share price
What the Numbers Set Up
The expected 12.3% revenue growth this quarter represents a meaningful step up from the 7.2% growth TD SYNNEX recorded in the same period a year ago. That comparison gives the company a relatively favorable setup, though the bar is not low given how sharply shares have run.
One area worth watching is the company's track record with top line estimates. TD SYNNEX has missed Wall Street's revenue forecasts multiple times over the past two years, which tempers some of the optimism around what is otherwise solid recent momentum. Analysts covering the stock have not meaningfully revised their numbers in the last 30 days, a sign they expect the business to perform roughly in line with current models.
Peer Context From the Sector
Among TD SYNNEX's closest peers in the tech hardware and electronics segment, Jabil is the only company to have reported results so far this cycle. Jabil delivered year over year sales growth of 11.8%, edging past analyst revenue estimates, though its stock was essentially flat on the news. That kind of muted reaction suggests investors in this segment are not easily surprised and are pricing in solid but not spectacular results.
Broader sentiment in tech hardware has been calm going into this earnings window. Share prices across the segment have been roughly flat over the past month, which makes TD SYNNEX's 23.4% gain stand out. That outperformance cuts both ways: the stock carries real momentum, but the current price of $296.15 already sits well above the average analyst target of $265.09.
The Price Target Gap
The spread between where SNX is trading and where analysts have set their targets is worth noting on its own terms. A stock trading roughly 12% above consensus target price heading into earnings is not necessarily a red flag, but it does mean the report will need to deliver something more than a routine beat to sustain the rally. Any shortfall on revenue or a softer forward outlook could close that gap quickly.
Frequently Asked Questions
When does TD SYNNEX report earnings?
TD SYNNEX is scheduled to release its quarterly results this Thursday morning.
What revenue growth is Wall Street expecting from TD SYNNEX this quarter?
Analysts are projecting revenue growth of approximately 12.3% year over year, up from the 7.2% growth the company posted in the same quarter of the prior year.
How did TD SYNNEX perform last quarter?
The company reported revenue of $17.16 billion, representing 18.1% year over year growth, and beat analyst estimates on both earnings per share and forward guidance.
What is the analyst price target for SNX?
The average analyst price target is $265.09, which is below the current share price of $296.15.
What to Watch Thursday
The setup heading into TD SYNNEX's report is a study in contrasts: strong recent execution, a history of missing revenue forecasts, a stock that has run hard, and a consensus target that the market has already left behind. The question Thursday is whether the underlying business can justify where shares have gone.
