Last week, you might have seen that TD SYNNEX Corporation (NYSE:SNX) released its full-year 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. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.
Check out our latest analysis for TD SYNNEX
Taking into account the latest results, the most recent consensus for TD SYNNEX from nine analysts is for revenues of US$58.8b in 2024. If met, it would imply a satisfactory 2.1% increase on its revenue over the past 12 months. Statutory earnings per share are predicted to jump 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. The consensus analysts don't seem to have seen anything in these results that would have changed their view on the business, given there's been no major change to their estimates.
The analysts reconfirmed their price target of US$117, showing that the business is executing well and in line with expectations. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. The most optimistic TD SYNNEX analyst has a price target of US$130 per share, while the most pessimistic values it at US$107. The narrow spread of estimates could suggest that the business' future is relatively easy to value, or thatthe analysts have a strong view on its prospects.
Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. We would highlight that TD SYNNEX's revenue growth is expected to slow, with the forecast 2.1% annualised growth rate until the end of 2024 being well below the historical 29% p.a. growth over the last 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 obvious conclusion is that there's been no major change in the business' prospects in recent times, with the analysts holding their earnings forecasts steady, in line with previous 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. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.
Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. We have forecasts for TD SYNNEX going out to 2026, and you can see them free on our platform here.
Even so, be aware that TD SYNNEX is showing 3 warning signs in our investment analysis , you should know about...
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.