TD SYNNEX CORP (SNX) Jul 2024 Earnings Report

TD SYNNEX Corporation: Investment Report

Overview

TD SYNNEX Corporation (SNX) is a leading distributor and solutions aggregator for the information technology (IT) ecosystem. With a market capitalization of approximately $9.37 billion, SNX provides a comprehensive range of products and services to value-added resellers, corporate resellers, government resellers, system integrators, direct marketers, retailers, and managed service providers. As a result, SNX is well-positioned to benefit from the growing demand for IT solutions and services. In this report, we will provide an in-depth analysis of SNX's financial performance, growth prospects, and recent news and updates.

Core Metrics

  • Current price: $109.69 USD
  • 52-week high: $133.85
  • 52-week low: $89.73
  • Market Cap: $9.37 billion
  • P/E Ratio: 15.38
  • Earnings per Share: $7.13
  • 50-day average: $123.83
  • 200-day average: $107.87
  • Analyst Recommendations: Buy (11 analysts)

Financial Performance

SNX's financial performance has been strong in recent years, driven by the growing demand for IT solutions and services. In the second quarter of fiscal 2024, SNX reported non-GAAP earnings of $2.73 per share, which fell short of the Zacks Consensus Estimate. However, the company's revenue growth rate has been steady, with a decline of only 0.8% year-over-year. SNX's gross margins have also been strong, with a margin of 7.05% in the second quarter. The company's EBITDA margins have been solid, with a margin of 3.02% in the second quarter.

Growth Prospects

SNX's growth prospects are strong, driven by the growing demand for IT solutions and services. The company's merger with Tech Data Corporation in September 2021 has expanded its product offerings and capabilities, making it a more comprehensive solutions provider for the IT ecosystem. SNX's strong relationships with its customers and partners, as well as its ability to provide a wide range of products and services, position the company for long-term growth.

News and Updates

Recent news articles have focused on SNX's second-quarter earnings and revenue miss, as well as the company's growth prospects. In a recent article, Uproxx highlighted SNX's partnership with Nike to provide Air Jordan 13 Dune Red sneakers. Another article by Yahoo Finance discussed SNX's recent earnings and revenue performance.

Upgrades and Downgrades

Recently, B of A Securities upgraded SNX to a Buy rating, citing the company's strong financial performance and growth prospects. UBS also upgraded SNX to a Buy rating, highlighting the company's ability to provide a comprehensive range of products and services to its customers. RBC Capital, on the other hand, downgraded SNX to a Sector Perform rating, citing the company's recent revenue miss.

Summary

In conclusion, TD SYNNEX Corporation is a well-positioned company with strong financial performance, growth prospects, and a comprehensive range of products and services. While the company's recent earnings and revenue performance have been mixed, we believe that SNX has the potential for long-term growth and is a good investment opportunity for those looking to invest in the IT sector.

Disclosures

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