A strong beat & conservative guide is a solid set-up for the shares; Raise PT to $352. Reit Buy

研报英文原文证据摘录

A strong beat & conservative guide is a solid set-up for the shares; Raise PT to $352. Reit Buy

nue. However, given ‘Hyve’ non-GAAP operating margin is at roughly 2x

‘Distribution’ margin, ‘Hyve’ is likely contributing roughly 30% of LTM profits and

growing in our view justifying a higher multiple for the shares.

Incremental 'Hyve' programs are potential strong drivers for FY27

On the call, the company reiterated it has multiple programs with its top three customers FY27 should benefit from

that could be material. For the F3Q outlook, the company noted its billings and revenue incremental hyperscaler programs

outlook does not contain any benefit from new programs at customers 4 and 5. that start to ramp early next year.

However, while specifics were not provided, the company did suggest these programs

have the potential to be material next year increasing our confidence that 'Hyve' can

likely grow faster than the infrastructure market next year underpinning our ~40%

'Hyve' billings growth forecast for FY27.

‘Distribution’ billings +22% as Servers/Storage & Networking accelerate

Consistent with our supply chain checks (link), strong demand across multiple We estimate modest a pull-in during

categories of technology drove ‘Distribution’ billings up 22% YoY led by 35% growth in the quarter with underlying demand

Servers/Storage/Cloud Infra and 26% growth in Networking, a notable sequential and share gains the key driver of

acceleration from 23% and 10%, respectively. PC billings also displayed revenue distribution performance.

resiliency growing 24%, similar to the 24% growth last quarter despite significant price

increases pressuring unit consumption as the company gained share in the category.

Aug guide is solidly above expectations. Increase rev and EPS ests (again)