TD Synnex Likely To Report Higher Q3 Earnings; These Most Accurate Analysts Revise Forecasts Ahead Of Earnings Call

TD SYNNEX (SNX) is scheduled to release Q3 earnings on Sept. 25, with analysts projecting EPS of $3.05 on $15.11 billion in revenue, an increase from the year-ago period. This precedes the company's recent multi-year strategic collaboration with AWS aimed at accelerating AI and cloud growth, and coincides with several recent analyst upgrades and price target increases, including Morgan Stanley raising its target to $173 and B of A Securities to $170, reflecting a broadly positive outlook on the stock.

Analysis

TD SYNNEX (SNX) is approaching its third-quarter earnings announcement with positive market expectations and strong analyst support. Consensus estimates project year-over-year growth, with earnings per share expected to rise to $3.05 from $2.86 and revenue to increase to $15.11 billion from $14.68 billion. This anticipated financial performance is complemented by a significant strategic development: a new multi-year collaboration with AWS signed in late August, aimed at accelerating growth in the high-demand AI and cloud sectors. Analyst sentiment is overtly bullish, with four out of five recent ratings being positive (Buy/Outperform/Overweight). Notably, these ratings were accompanied by price target increases, with Morgan Stanley raising its target to $173 and B of A Securities to $170. Even the lone Neutral rating from JP Morgan included a price target lift to $160, placing all recent analyst targets comfortably above the stock's last closing price of $151.88. This combination of expected earnings growth, a key strategic partnership in a high-growth area, and a wave of upward analyst revisions creates a constructive narrative for the company.

Key Decisions for Investors

• Given the strong positive analyst consensus and multiple price target hikes, investors with existing long positions may view the pre-earnings setup as supportive for maintaining their holdings.
• The primary focus for the earnings release should be whether the company meets or exceeds the consensus EPS of $3.05 and revenue of $15.11 billion, as a miss could undermine the recent positive momentum.
• Investors should closely scrutinize management's forward guidance, particularly any quantitative details regarding the expected financial impact and timeline of the new AWS collaboration, as this is a key pillar of the bull thesis.
• A beat on earnings combined with a strong outlook could validate the recent analyst upgrades and signal further upside potential towards the higher-end price targets, such as Morgan Stanley's $173.