Why IT Solutions Firm TD SYNNEX Shares Are Falling Today
Portfolio Pulse from Nabaparna Bhattacharya
TD SYNNEX Corporation (NYSE:SNX) reported Q4 FY23 revenue of $14.407 billion, an 11.3% decrease year-over-year, missing consensus estimates. The decline was attributed to reduced demand for PC ecosystem products post-pandemic. Adjusted EPS of $3.13 beat the $2.68 consensus. The company announced a 14% increase in its quarterly dividend to $0.40 per share. For Q1 2024, TD SYNNEX forecasts adjusted EPS of $2.60-$3.10 and revenue of $14 billion-$14.7 billion, both below estimates. Shares fell by 1.43% to $103.44.
January 09, 2024 | 3:55 pm
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TD SYNNEX reported lower than expected Q4 revenue and provided a Q1 outlook below estimates, but beat EPS consensus for Q4 and increased its dividend by 14%.
The revenue miss and lower guidance for Q1 2024 are likely to negatively impact investor sentiment in the short term, despite the EPS beat and dividend increase. The stock price decline on the day of the announcement reflects immediate investor reaction.
CONFIDENCE 90
IMPORTANCE 85
RELEVANCE 100