TD SYNNEX Announces Fiscal Third Quarter 2024 Financial Results
Intellectia.AI2024-09-26
TD SYNNEX Announces Fiscal Third Quarter 2024 Financial Results
TD SYNNEX Corporation (NYSE: SNX) reported its financial results for the fiscal third quarter ended August 31, 2024. The company's performance showcased robust growth and strategic achievements across various geographies and business segments.
Key Financial Metrics (in USD)
| Metric | Q3 2024 | Q3 2023 | YoY Change | Consensus Estimates |
|---|---|---|---|---|
| Revenue | $14.7 billion | $14.0 billion | +5.2% | $14.11 billion |
| Non-GAAP Gross Billings | $20.3 billion | $18.6 billion | +9.1% | - |
| Diluted EPS | $2.08 | $1.49 | +39.6% | $2.8 |
| Non-GAAP Diluted EPS | $2.86 | $2.78 | +2.9% | - |
| Cash Provided by Operations | $386 million | $592 million | -34.8% | - |
| Free Cash Flow | $339 million | $552 million | -38.6% | - |
Interpretation : TD SYNNEX exceeded market expectations with its Q3 revenue, reaching the upper limit of its guidance range. Despite a decline in cash flows, the company delivered strong earnings per share growth, reflecting efficient cost management and strategic positioning.
Revenue Performance by Segments (in USD)
| Segment | Q3 2024 Revenue | Previous Year Revenue | YoY Change |
|---|---|---|---|
| Americas | $9.1 billion | $8.9 billion | +2.4% |
| Europe | $4.6 billion | $4.2 billion | +8.6% |
| Asia-Pacific Japan | $1.0 billion | $0.9 billion | +17.6% |
Interpretation : Each geographic segment contributed positively to revenue growth, with the Asia-Pacific and Japan regions leading the performance surge. This underscores TD SYNNEX's effective global strategy and market penetration capabilities.
Key Developments and Operational Highlights
- Non-GAAP gross billings of $20.3 billion surpassed the forecasted range.
- Gross margin improvements were driven by strategic technology product sales.
- Operating income rose due to decreased acquisition-related costs.
- Successfully returned $91 million to shareholders through dividends and share repurchases.
Executive Comments
CEO Patrick Zammit highlighted the quarter’s growth as a positive signal for IT market revival, emphasizing gains in Endpoint and Advanced solutions. He credited broad market reach and strategic execution as pivotal to the company’s performance.
Dividends and Share Repurchase Program
The board announced an increased quarterly cash dividend of $0.40 per common share, reflecting a 14% enhancement over the previous year. The dividend will be payable on October 25, 2024.
Forward Guidance
TD SYNNEX provided forward-looking statements indicating positive expectations for the fiscal fourth quarter of 2024, though specific guidance figures were not disclosed.
Stock Price Movement
Following the earnings announcement, TD SYNNEX shares experienced a slight downturn, reflecting a decrease of approximately 1.85%.
In summary, TD SYNNEX delivered strong fiscal third-quarter results with significant revenue and earnings growth, supported by strategic global operations and favorable market conditions. The announcement of increased dividends further signifies the company’s commitment to shareholder value.
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