TD SYNNEX (SNX) to Report Q2 Earnings: What's in the Offing?

TD SYNNEX SNX is scheduled to release second-quarter fiscal 2022 results on Jun 28.

TD SYNNEX was formerly known as SYNNEX Corporation, but the company changed its name after the acquisition of Tech Data Corporation on Sep 1, 2021.

For the fiscal second quarter, the company expects revenues between $14.8 billion and $15.8 billion. The Zacks Consensus Estimate for quarterly revenues is pegged at $15.34 billion, indicating a whopping 161.9% increase from the prior-year period.

Moreover, SNX projects fiscal second-quarter non-GAAP earnings between $2.40 and $2.80 per share. The consensus mark of $2.62 for quarterly earnings suggests a year-over-year increase of approximately 25.4% from the year-ago quarter’s $2.09 per share.

The company’s earnings surpassed the Zacks Consensus Estimate in each of the trailing four quarters, the average surprise being 8.1%.

TD SYNNEX Corp. Price and EPS Surprise

TD SYNNEX Corp. price-eps-surprise | TD SYNNEX Corp. Quote

Factors to Note Ahead of Q2 Earnings

TD SYNNEX’s fiscal second-quarter performance is likely to have benefited from revenue contributions from the newly merged Tech Data Corporation business. A steady IT spending environment due to rapid digital transformation is anticipated to have boosted the top line.

The increased demand for hardware and tools, which support remote working, is anticipated to have boosted TD SYNNEX’s revenues during the quarter under review. The pandemic-induced work-and-learn-from-home wave has been driving the sales of peripherals, software, communication, networking and consumer electronic products. This impressive demand trend is likely to have been conducive to SNX’s top line during the fiscal second quarter.

Additionally, pandemic-led disruptions in economic activities have led to the increased usage of online and e-commerce services globally. Also, the work-and-learn-from-home necessity has been stoking the demand for cloud storage. Therefore, data center operators are enhancing their capacities to accommodate the demand spike for cloud services, which is likely to have aided TD SYNNEX’s data center servers and storage solution businesses during the fiscal second quarter.

However, the positive impact of the aforementioned factors might have been partially offset by prevailing supply-chain disruptions caused by the pandemic. Foreign-exchange headwinds are expected to have been an added concern.

What Our Model Says

Our proven model does not conclusively predict an earnings beat for TD SYNNEX this season. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. However, that’s not the case here.

TD SYNNEX has an Earnings ESP of 0.00% and carries a Zacks Rank of 3 at present. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Stocks With the Favorable Combination

Per our model, Delta Air Lines DAL, Citigroup C and Heartland Express HTLD have the right combination of elements to post an earnings beat in their upcoming releases.

Delta Air Lines is expected to report second-quarter 2022 results on Jul 13. The company carries a Zacks Rank #3 and has an Earnings ESP of +6.98% at present. Delta Air Lines’ earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, the average surprise being 43.7%. You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for second-quarter earnings is pegged at $1.67 per share, suggesting a strong improvement from the year-ago quarter’s loss of $1.07. DAL’s quarterly revenues are estimated to increase 82.7% year over year to $13.02 billion.

Citigroup carries a Zacks Rank #3 and has an Earnings ESP of +4.80%. The company is slated to report second-quarter 2022 results on Jul 15. Citigroup’s earnings surpassed the Zacks Consensus Estimate in the trailing four quarters, the average surprise being 24.5%.

The Zacks Consensus Estimate for C’s second-quarter earnings is pegged at $1.63 per share, indicating a year-over-year decline of 42.6%. The consensus mark for revenues stands at $18.03 billion, suggesting a year-over-year increase of 3.2%.

Heartland Express carries a Zacks Rank #3 and has an Earnings ESP of +6.93%. The company is anticipated to report its second-quarter 2022 results on Jul 18. Heartland Express’ earnings beat the Zacks Consensus Estimate thrice in the preceding four quarters while matching the same on one occasion, the average surprise being 3.5%.

The Zacks Consensus Estimate for Heartland Express’ second-quarter earnings stands at 25 cents per share, implying a year-over-year decrease of 3.9%. HTLD is estimated to report revenues of $160.4 million, which suggests growth of 4.1% from the year-ago quarter.

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