Why TD SYNNEX (SNX) International Revenue Trends Deserve Your Attention

Zacks Equity Research

Mon, Jan 13, 2025, 6:15 AM 4 min read

Have you looked into how TD SYNNEX (SNX) performed internationally during the quarter ending November 2024? Considering the widespread global presence of this high-tech contractor, examining the trends in international revenues is essential for assessing its financial resilience and prospects for growth.

The global economy today is deeply interlinked, making a company's engagement with international markets a critical factor in determining its financial success and growth path. It has become essential for investors to comprehend how much a company relies on these foreign markets, as this understanding reveals the firm's potential for consistent earnings, its capacity to harness different economic cycles, and its overall growth prospects.

Participation in global economies acts as a defense against economic difficulties at home and a pathway to more rapidly developing economies. However, it also comes with the complexities of dealing with fluctuating currencies, geopolitical risks and different market dynamics.

While analyzing SNX's performance for the last quarter, we found some intriguing trends in revenues from its overseas segments that Wall Street analysts commonly model and monitor.

The company's total revenue for the quarter amounted to $15.84 billion, showing rise of 10%. We will now explore the breakdown of SNX's overseas revenue to assess the impact of its international operations.

Exploring SNX's International Revenue Patterns

Of the total revenue, $5.5 billion came from Europe during the last fiscal quarter, accounting for 34.71%. This represented a surprise of -1.12% as analysts had expected the region to contribute $5.56 billion to the total revenue. In comparison, the region contributed $4.59 billion, or 31.27%, and $5.21 billion, or 36.18%, to total revenue in the previous and year-ago quarters, respectively.

Asia-Pacific and Japan accounted for 6.97% of the company's total revenue during the quarter, translating to $1.1 billion. Revenues from this region represented a surprise of +20.89%, with Wall Street analysts collectively expecting $913.59 million. When compared to the preceding quarter and the same quarter in the previous year, Asia-Pacific and Japan contributed $1 billion (6.83%) and $838.27 million (5.82%) to the total revenue, respectively.

International Revenue Predictions

Wall Street analysts expect TD SYNNEX to report $14.8 billion in total revenue for the current fiscal quarter, indicating an increase of 5.9% from the year-ago quarter. Europe and Asia-Pacific and Japan are expected to contribute 36.7% ($5.43 billion) and 6.9% ($1.02 billion) to the total revenue, respectively.

For the full year, the company is expected to generate $61.03 billion in total revenue, up 4.4% from the previous year. Revenues from Europe and Asia-Pacific and Japan are expected to constitute 34.1% ($20.8 billion) and 6.7% ($4.11 billion) of the total, respectively.

Closing Remarks

Relying on global markets for revenues presents both prospects and challenges for TD SYNNEX. Therefore, scrutinizing its international revenue trends is key to effectively forecasting the company's future outlook.

In an environment where global interconnections and geopolitical skirmishes are intensifying, Wall Street analysts keep a keen eye on these trends, particularly for firms with overseas operations, to adjust their earnings predictions. Moreover, a range of other aspects, including how a company fares in its home country, significantly affects these projections.

At Zacks, a company's changing earnings outlook is given considerable attention due to its proven, strong influence on a stock's price performance in the near term. The connection here is straightforward and positive: when earnings estimates are revised upward, the stock price generally follows suit, increasing as well.

With an impressive externally audited track record, our proprietary stock rating tool - the Zacks Rank - harnesses the power of earnings estimate revisions and serves as an effective indicator of a stock's near-term price performance.

TD SYNNEX, bearing a Zacks Rank #3 (Hold), is expected to mirror the broader market's movements in the near term. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>

Examining the Latest Trends in TD SYNNEX's Stock Value

Over the past month, the stock has seen an increase of 8.7% in its value, whereas the Zacks S&P 500 composite has posted a decrease of 2.2%. The Zacks Computer and Technology sector, TD SYNNEX's industry group, has descended 1.3% over the identical span. In the past three months, there's been an increase of 9.7% in the company's stock price, against a rise of 2.5% in the S&P 500 index. The broader sector has increased by 4.2% during this interval.

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