TD SYNNEX (NYSE: SNX), a leading global distributor and solutions aggregator for the IT ecosystem, is set to report its financial results for the fourth quarter and full year of fiscal 2024 before the U.S. market opens on Thursday, January 9, 2025. The company has a history of releasing figures that are above expectations, and analysts' opinions have been strongly revised upwards over the past twelve months. This article will provide an overview of the key drivers of TD SYNNEX's revenue and earnings growth in 2024 and discuss the potential impact of the earnings release on the company's stock performance.



Key Drivers of TD SYNNEX's Revenue and Earnings Growth in 2024

1. Cloud and Advanced Solutions: TD SYNNEX is focusing on cloud, cybersecurity, big data/analytics, AI, IoT, and mobility solutions, which are among the highest-growth technology segments. The company's commitment to these areas is expected to contribute significantly to its revenue growth. For instance, the company's "Direction of Technology Report" highlights that partners of the future are embracing collaboration, advanced solutions, and infrastructure, which aligns with TD SYNNEX's focus areas (Source: Business Wire, 7 weeks ago).
2. Innovation and Partnerships: TD SYNNEX is continuously innovating and forming strategic partnerships to expand its offerings and reach new markets. For example, the company opened an Innovation Studio with IBM to provide collaborative AI enablement for partners (Source: Business Wire, 2 days ago). Additionally, TD SYNNEX has announced partnerships with Maxar Intelligence, LastPass, and other companies, which are expected to drive growth (Source: Business Wire, 5 weeks ago).
3. Acquisitions and Expansions: TD SYNNEX has been expanding its business through acquisitions and strategic investments. The company completed the acquisition of IPsense's cloud migration business in Brazil, which is expected to strengthen its cloud migration capabilities and drive growth in the region (Source: Business Wire, 5 weeks ago). Furthermore, TD SYNNEX became the sole distributor of IBM solutions throughout the English and Dutch Caribbean, expanding its reach in the region (Source: Business Wire, 10 days ago).
4. Strong Financial Performance: TD SYNNEX has a strong financial position, with a current ratio of 1.25 and a Debt/Equity ratio of 0.50, indicating a healthy balance sheet. The company's free cash flow margin is 1.22%, and it has paid $174.15 million in taxes in the past 12 months, demonstrating its profitability and cash generation capabilities.
5. Analyst Forecasts: According to 8 analysts, the average rating for SNX stock is "Buy," and the 12-month stock price forecast is $134.75, which is an increase of 10.36% from the latest price. This suggests that analysts expect the company's earnings to grow in the coming year (Source: Benzinga, 7 days ago).

TD SYNNEX's Stock Performance and Earnings Releases

TD SYNNEX's stock performance has generally reacted positively to its earnings releases in the past. For instance, on January 10, 2025, the company is expected to release its fourth quarter and full year fiscal 2024 earnings results. According to Benzinga, analysts have revised their forecasts ahead of the earnings call, suggesting a positive outlook. In the past, TD SYNNEX has shown strong fundamentals, with over 70% of companies having a lower mix of growth, profitability, debt, and visibility. The company's valuation level is an asset, given its positive cash flows, and analysts covering the equity mostly recommend stock overweighting or purchase. Historically, the company has been releasing figures that are above expectations, which has contributed to a positive stock performance following earnings releases.



In conclusion, TD SYNNEX's strong fundamentals, positive cash flows, and key drivers of revenue and earnings growth position the company well for a positive earnings release. Analysts' positive outlook and the company's history of releasing figures above expectations suggest that the stock performance may react positively to the earnings release. Investors should closely monitor the earnings call and the subsequent market reaction to make informed decisions about their investments in TD SYNNEX.