BTN Red Flag Note- TD SYNNEX Corp (SNX)

Reserve cuts, disclosure changes, and growing payables dampen the Q4 beat

TD SYNNEX (SNX) delighted investors with its Q4 EPS of $3.09 which topped analysts’ estimates by 4 cps and revenue that came in 4% higher than expected. The stock is up more than 15% since earnings were released. However, our initial review of the quality of Q4 earnings turned up several warning signs we will document below.

Please note that this report is not a comprehensive earnings quality assessment of the company. We may conduct further analysis and publish a more detailed report at a later date.

In case you missed it, here is a link to our Tuesday piece Shorting Isn’t Dead… which has the paywall down for free subscribers to enjoy as well.

Now let’s get behind SNX’s numbers…

---