TD SYNNEX Corp. reported a decline in net income for the third quarter, causing shares to drop. The company’s adjusted earnings per share in Q3 were above estimates, but its guidance for Q4 fell short of expectations. Analysts were anticipating earnings of $2.95 per share on revenues of $15.21 billion, while TD SYNNEX is projecting earnings in the range of $1.25 to $1.75 per share and adjusted earnings between $2.40 and $2.90 per share. The fourth quarter outlook, along with the decline in net income, has raised concerns among investors about the company’s performance.

Summary

This article provides a comprehensive overview of the financial performance of TD SYNNEX Corporation (SNX) in the third quarter (Q3) of the current year, as well as its guidance for the fourth quarter (Q4). It also highlights the company’s dividend announcement and includes analyst estimates for both Q3 and Q4. Additionally, the article offers background and history on TD SYNNEX Corporation, details its company profile, analyzes the market impact of its financial performance, and provides an industry analysis. Finally, the article concludes with a summary of the key findings.

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Financial Performance

Net Income Declines in Q3

TD SYNNEX Corporation reported a decrease in net income for the third quarter (Q3). The net income declined from $148.8 million or $1.56 per share in the prior-year quarter to $139.3 million or $1.49 per share.

Adjusted Net Income for Q3

Excluding special items, the adjusted net income for Q3 was $2.78 per share, compared to $2.74 per share in the year-ago quarter. This adjusted net income figure provides a clearer picture of the company’s financial performance by accounting for any one-time or non-recurring expenses.

Revenue Decreases in Q3

TD SYNNEX Corporation also experienced a decrease in revenue for the third quarter. The revenue for the quarter decreased by 9.1 percent, amounting to $13.96 billion, compared to $15.36 billion in the same quarter last year. In constant currency, the revenue decrease was 10.2 percent.

Q4 Guidance

Earnings Outlook for Q4

Looking ahead to the fourth quarter, TD SYNNEX Corporation expects earnings in a range of $1.25 to $1.75 per share. This projected range provides an estimate of the company’s expected earnings for Q4 and allows investors to anticipate its financial performance.

Adjusted Earnings Outlook for Q4

TD SYNNEX Corporation also provided an adjusted earnings outlook for Q4, which is expected to be in a range of $2.40 to $2.90 per share. This adjusted earnings outlook reflects any additional factors that may affect the company’s earnings, such as non-recurring expenses or other financial adjustments.

Revenue Outlook for Q4

The company’s revenue outlook for the fourth quarter is projected to be between $14.0 billion and $15.0 billion. This guidance provides an estimate of the expected revenue for Q4 and allows investors to assess the company’s growth prospects.

Dividend Announcement

TD SYNNEX Corporation’s Board of Directors declared a quarterly cash dividend of $0.35 per common share. This dividend will be payable on October 27, 2023, to stockholders of record as of the close of business on October 13, 2023. This dividend announcement indicates the company’s commitment to returning value to its shareholders.

Analyst Estimates

Analyst Expectations for Q3 Earnings

Analysts polled by Thomson Reuters expected TD SYNNEX Corporation to report earnings of $2.48 per share for the third quarter. These analyst estimates provide insight into market expectations for the company’s financial performance and can impact investor sentiment.

Analyst Expectations for Q3 Revenue

The same group of analysts projected revenues of $14.11 billion for the third quarter. These revenue estimates provide further insight into market expectations and allow investors to assess the company’s ability to meet or exceed these projections.

Analyst Expectations for Q4 Earnings

Looking ahead to the fourth quarter, analysts are expecting earnings of $2.95 per share. These analyst estimates provide an indication of market sentiment for the company’s financial performance in the upcoming quarter, and investors can use this information to inform their investment decisions.

Analyst Expectations for Q4 Revenue

Analysts also anticipate revenues of $15.21 billion for the fourth quarter. These revenue estimates provide additional insights into market expectations and can influence investor sentiment.

Background and History

TD SYNNEX Corporation was founded in the late 1990s by Andrew Mariathasan in New York. The company’s initial goal was to cover Wall Street for a new generation of investors. Since its establishment, TD SYNNEX Corporation has expanded steadily and become a trusted provider of content across various platforms. Today, TD SYNNEX Corporation is recognized for its financial newswire, which is relied upon by some of the world’s largest financial institutions, including banks, brokerages, trading platforms, and financial exchanges.

Company Profile

TD SYNNEX Corporation is a leading provider of technology products and services. The company operates in the B2B technology distribution industry, offering a wide range of solutions to meet the needs of its customers. TD SYNNEX Corporation serves various sectors, including telecommunications, healthcare, retail, education, and government. The company is known for its strong partnerships with leading technology manufacturers and its commitment to delivering innovative solutions to its customers.

Market Impact

The financial performance of TD SYNNEX Corporation in Q3 is likely to have an impact on the company’s stock price and market sentiment. The decline in net income and revenue may lead to a decrease in investor confidence, potentially resulting in a decline in the company’s stock price. However, the adjusted figures and the dividend announcement may mitigate some negative effects and demonstrate the company’s proactive approach to managing its financials and returning value to shareholders.

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Industry Analysis

As a player in the B2B technology distribution industry, TD SYNNEX Corporation operates in a highly competitive market. The industry is characterized by rapid technological advancements and evolving customer needs. Key factors influencing the industry include product innovation, supply chain management, and customer relationships. TD SYNNEX Corporation’s ability to adapt to these dynamics, leverage its partnerships, and provide value-added services will be critical to maintaining a competitive edge in the industry.

Conclusion

In conclusion, TD SYNNEX Corporation’s financial performance in the third quarter reflected a decline in net income and revenue. However, adjusted figures and the dividend announcement highlight the company’s proactive approach to managing its financials and returning value to shareholders. Looking ahead to the fourth quarter, TD SYNNEX Corporation provided earnings and revenue outlooks, allowing investors to assess its growth prospects. Analyst estimates provide further insights into market expectations, while the company’s background, profile, and industry analysis offer a broader understanding of TD SYNNEX Corporation’s position and potential impact in the market.

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Source: https://www.nasdaq.com/articles/td-synnex-q3-adj.-eps-tops-estimates-guides-q4-below-estimates