It's been a sad week for TD SYNNEX Corporation (NYSE:SNX), who've watched their investment drop 13% to US$116 in the week since the company reported its quarterly result. It looks like a pretty bad result, all things considered. Although revenues of US$14b were in line with analyst predictions, statutory earnings fell badly short, missing estimates by 20% to hit US$1.66 per share. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on TD SYNNEX after the latest results.

Following last week's earnings report, TD SYNNEX's ten analysts are forecasting 2024 revenues to be US$57.3b, approximately in line with the last 12 months. Statutory earnings per share are predicted to swell 12% to US$8.41. Before this earnings report, the analysts had been forecasting revenues of US$58.0b and earnings per share (EPS) of US$9.05 in 2024. The analysts seem to have become a little more negative on the business after the latest results, given the small dip in their earnings per share numbers for next year.

It might be a surprise to learn that the consensus price target was broadly unchanged at US$135, with the analysts clearly implying that the forecast decline in earnings is not expected to have much of an impact on valuation. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. The most optimistic TD SYNNEX analyst has a price target of US$150 per share, while the most pessimistic values it at US$115. Even so, with a relatively close grouping of estimates, it looks like the analysts are quite confident in their valuations, suggesting TD SYNNEX is an easy business to forecast or the the analysts are all using similar assumptions.

One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. We would highlight that TD SYNNEX's revenue growth is expected to slow, with the forecast 3.7% annualised growth rate until the end of 2024 being well below the historical 27% 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 6.6% annually. Factoring in the forecast slowdown in growth, it seems obvious that TD SYNNEX is also expected to grow slower than other industry participants.

The Bottom Line

The biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for TD SYNNEX. 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. The consensus price target held steady at US$135, with the latest estimates not enough to have an impact on their price targets.

With that in mind, we wouldn't be too quick to come to a conclusion on TD SYNNEX. Long-term earnings power is much more important than next year's profits. At Simply Wall St, we have a full range of analyst estimates for TD SYNNEX going out to 2026, and you can see them free on our platform here..

Don't forget that there may still be risks. For instance, we've identified 1 warning sign for TD SYNNEX that you should be aware of.

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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com