Synnex Technology International Full Year 2023 Earnings: Revenues Beat Expectations, EPS In Line

Synnex Technology International (TWSE:2347) Full Year 2023 Results

Key Financial Results

• Revenue: NT$396.0b (down 6.7% from FY 2022).
• Net income: NT$7.29b (down 54% from FY 2022).
• Profit margin: 1.8% (down from 3.7% in FY 2022). The decrease in margin was driven by lower revenue.
• EPS: NT$4.37 (down from NT$9.44 in FY 2022).

All figures shown in the chart above are for the trailing 12 month (TTM) period

Synnex Technology International Revenues Beat Expectations

Revenue exceeded analyst estimates by 1.5%. Earnings per share (EPS) was mostly in line with analyst estimates.

The primary driver behind last 12 months revenue was the Distribution Business Group segment contributing a total revenue of NT$275.4b (70% of total revenue). Notably, cost of sales worth NT$378.4b amounted to 96% of total revenue thereby underscoring the impact on earnings. The largest operating expense was Sales & Marketing costs, amounting to NT$7.28b (71% of total expenses). Explore how 2347's revenue and expenses shape its earnings.

Looking ahead, revenue is forecast to grow 6.0% p.a. on average during the next 2 years, compared to a 11% growth forecast for the Electronic industry in Taiwan.

Performance of the Taiwanese Electronic industry.

The company's shares are up 6.4% from a week ago.

Risk Analysis

You still need to take note of risks, for example - Synnex Technology International has 3 warning signs (and 1 which makes us a bit uncomfortable) we think you should know about.

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