Here's What Analysts Are Forecasting For TD SYNNEX Corporation (NYSE:SNX) After Its Annual Results

SYNNEX Corporation +1.28% Pre

SYNNEX Corporation

SNX

130.25

132.00

+1.28%

+1.34% Pre

Last week, you might have seen that TD SYNNEX Corporation (NYSE:SNX) released its annual result to the market. The early response was not positive, with shares down 4.2% to US$102 in the past week. The result was positive overall - although revenues of US$58b were in line with what the analysts predicted, TD SYNNEX surprised by delivering a statutory profit of US$6.70 per share, modestly greater than expected. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.

See our latest analysis for TD SYNNEX

earnings-and-revenue-growth
NYSE:SNX Earnings and Revenue Growth January 30th 2024

Taking into account the latest results, the current consensus from TD SYNNEX's nine analysts is for revenues of US$58.8b in 2024. This would reflect a reasonable 2.1% increase on its revenue over the past 12 months. Statutory earnings per share are predicted to shoot up 27% to US$8.90. In the lead-up to this report, the analysts had been modelling revenues of US$58.8b and earnings per share (EPS) of US$8.98 in 2024. So it's pretty clear that, although the analysts have updated their estimates, there's been no major change in expectations for the business following the latest results.

The analysts reconfirmed their price target of US$117, showing that the business is executing well and in line with expectations. There's another way to think about price targets though, and that's to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. The most optimistic TD SYNNEX analyst has a price target of US$130 per share, while the most pessimistic values it at US$107. Even so, with a relatively close grouping of estimates, it looks like the analysts are quite confident in their valuations, suggesting TD SYNNEX is an easy business to forecast or the the analysts are all using similar assumptions.

One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. It's pretty clear that there is an expectation that TD SYNNEX's revenue growth will slow down substantially, with revenues to the end of 2024 expected to display 2.1% growth on an annualised basis. This is compared to a historical growth rate of 29% over the past five years. Compare this against other companies (with analyst forecasts) in the industry, which are in aggregate expected to see revenue growth of 5.2% annually. So it's pretty clear that, while revenue growth is expected to slow down, the wider industry is also expected to grow faster than TD SYNNEX.

The Bottom Line

The most important thing to take away is that there's been no major change in sentiment, with the analysts reconfirming that the business is performing in line with their previous earnings per share estimates. Fortunately, the analysts also reconfirmed their revenue estimates, suggesting that it's tracking in line with expectations. Although our data does suggest that TD SYNNEX's revenue is expected to perform worse than the wider industry. The consensus price target held steady at US$117, with the latest estimates not enough to have an impact on their price targets.

Following on from that line of thought, we think that the long-term prospects of the business are much more relevant than next year's earnings. At Simply Wall St, we have a full range of analyst estimates for TD SYNNEX going out to 2026, and you can see them free on our platform here..

Before you take the next step you should know about the 3 warning signs for TD SYNNEX that we have uncovered.

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