BUZZ-TD Synnex shares plunge after gross margin decline announced

September 24 - ** Shares of US-based IT distributor TD Synnex (SNX.N) fell 11.4% to $255

** The company (link) reported third-quarter gross margin of 6.61%, down from 7.22% in the same period last year

** The Chief Financial Officer said on the earnings call that gross margin was under pressure due to a higher proportion of low-margin infrastructure and AI-related sales, including large-scale AI rack projects in the company's Hyve infrastructure business

** SNX reported third-quarter adjusted earnings per share of $5.68 and revenue of $21.56 billion. Analysts had previously expected $4.63 and $18.9 billion, respectively—data compiled by London Stock Exchange Group (LSEG)

** Of 13 brokerages, 11 rated the stock as "buy" or higher, and 2 as "hold"; the median target price is $330

** Including recent gains, the stock is up a total of 69.9%

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