TD SYNNEX Analysts Increase Their Forecasts After Upbeat Q1 Earnings

TD SYNNEX Corporation SNX reported better-than-expected first-quarter earnings.

The company reported first quarter adjusted earnings per share of $2.99, beating the street view of $2.84. The company reported quarterly revenue of $13.975 billion, missing the analyst view of $14.357 billion, according to data from Benzinga Pro.

TD SYNNEX Board of Directors has approved a share repurchase program of up to $2 billion of its common stock, supplementing the existing program of approximately $197 million remaining.

The company declared a quarterly cash dividend of $0.40 per common share. The dividend is payable on April 26, 2024, to stockholders of record as of the close of business on April 12, 2024.

"We generated strong results in our fiscal first quarter, driven by our expansive portfolio and an improving IT demand environment. This resulted in record margins, EPS at the upper end of our expectations, healthy free cash flow and robust capital returned to shareholders," said Rich Hume, CEO of TD SYNNEX. "We are leveraging our strong relationships across the business partner ecosystem along with our robust core and strategic technology portfolios to accelerate growth for our partners, while continuing to produce strong returns for our shareholders."

TD SYNNEX expects second-quarter revenues of $13.3 billion- $14.9 billion versus the $14.25 billion estimate. The company sees adjusted earnings per share of $2.50-$3.00 versus the $2.78 estimate.

TD SYNNEX shares gained 1.3% to trade at $113.68 on Wednesday.

These analysts made changes to their price targets on TD SYNNEX following earnings announcement.

• Barclays raised the price target on TD SYNNEX from $111 to $118. Barclays analyst Tim Long maintained an Equal-Weight rating.
• RBC Capital raised the price target on TD SYNNEX from $110 to $118. RBC Capital analyst Ashish Sabadra reiterated a Sector Perform rating.

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