TD SYNNEX's (NYSE:SNX) Soft Earnings Don't Show The Whole Picture

Simply Wall St ·  Feb 2 13:56

Soft earnings didn't appear to concern TD SYNNEX Corporation's (NYSE:SNX) shareholders over the last week. We did some digging, and we believe the earnings are stronger than they seem.

NYSE:SNX Earnings and Revenue History February 2nd 2024

The Impact Of Unusual Items On Profit

Importantly, our data indicates that TD SYNNEX's profit was reduced by US$221m, due to unusual items, over the last year. While deductions due to unusual items are disappointing in the first instance, there is a silver lining. We looked at thousands of listed companies and found that unusual items are very often one-off in nature. And that's hardly a surprise given these line items are considered unusual. Assuming those unusual expenses don't come up again, we'd therefore expect TD SYNNEX to produce a higher profit next year, all else being equal.

That might leave you wondering what analysts are forecasting in terms of future profitability. Luckily, you can click here to see an interactive graph depicting future profitability, based on their estimates.

Our Take On TD SYNNEX's Profit Performance

Unusual items (expenses) detracted from TD SYNNEX's earnings over the last year, but we might see an improvement next year. Because of this, we think TD SYNNEX's earnings potential is at least as good as it seems, and maybe even better! And we are pleased to note that EPS is at least heading in the right direction over the last three years. The goal of this article has been to assess how well we can rely on the statutory earnings to reflect the company's potential, but there is plenty more to consider. In light of this, if you'd like to do more analysis on the company, it's vital to be informed of the risks involved. For example, we've discovered 3 warning signs that you should run your eye over to get a better picture of TD SYNNEX.

Today we've zoomed in on a single data point to better understand the nature of TD SYNNEX's profit. But there is always more to discover if you are capable of focussing your mind on minutiae. For example, many people consider a high return on equity as an indication of favorable business economics, while others like to 'follow the money' and search out stocks that insiders are buying. While it might take a little research on your behalf, you may find this free collection of companies boasting high return on equity, or this list of stocks that insiders are buying to be useful.

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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.

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