IT services aggregator TD Synnex beat Q3 revenue, adjusted profit estimates
Overview
TD Synnex fiscal Q3 revenue rises 6.6% yr/yr, beating analyst expectations, per LSEG data
Adjusted EPS for fiscal Q3 beats consensus, reflecting strong operational performance
Co returned $210 mln to shareholders via share repurchases and dividends
Outlook
TD Synnex sees Q4 2025 revenue between $16.5 bln and $17.3 bln
Company expects Q4 non-GAAP gross billings of $23.0 bln to $24.0 bln
TD Synnex forecasts Q4 net income of $204 mln to $245 mln
Company anticipates Q4 non-GAAP EPS of $3.45 to $3.95
Result Drivers
ADVANCED AND ENDPOINT SOLUTIONS - Growth in Advanced Solutions and Endpoint Solutions portfolios drove revenue increase
PRODUCT MIX IMPACT - Greater percentage of sales presented on a net basis negatively impacted revenue by about 5%
GROSS MARGIN IMPROVEMENT - Presentation of additional revenues on a net basis positively impacted gross margin by 35 basis points
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q3 Revenue | Beat | $15.65 bln | $15.11 bln (9 Analysts) |
Q3 Adjusted EPS | Beat | $3.58 | $3.05 (11 Analysts) |
Q3 EPS | $2.74 | ||
Q3 Adjusted Net Income | Beat | $296.20 mln | $247.40 mln (8 Analysts) |
Q3 Net Income | $226.80 mln | ||
Q3 Adjusted Operating Income | Beat | $474.90 mln | $410.20 mln (9 Analysts) |
Q3 Operating Income | $383.70 mln |
Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 11 "strong buy" or "buy", 2 "hold" and no "sell" or "strong sell"
The average consensus recommendation for the computer hardware peer group is "buy"
Wall Street's median 12-month price target for TD Synnex Corp is $158.00, about 4.8% above its September 24 closing price of $150.34
The stock recently traded at 11 times the next 12-month earnings vs. a P/E of 10 three months ago
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