TD SYNNEX Earnings
TD SYNNEX Corp. has announced its financial performance for the fiscal fourth quarter and the full fiscal year ending on November 30, 2024. The company exhibited robust financial results, surpassing year-over-year projections in numerous areas.
Key Financial Metrics
| Metric | Q4 2024 | Q4 2023 | Year-Over-Year Change (%) | Consensus Estimate (if applicable) |
|---|---|---|---|---|
| Total Revenue | $15.8 billion | $14.4 billion | +10.0% | Above outlook of $14.9 - $15.7 billion |
| Gross Billings (Non-GAAP) | $21.2 billion | $19.7 billion | +7.6% | Above the midpoint of $20.5 - $21.5 billion |
| Diluted EPS | $2.29 | $2.06 | +11.2% | Above mid-point of guidance |
| Cash Provided by Operations | $562 million | $211 million | +166.4% | Not Applicable |
TD SYNNEX posted impressive growth in Q4, with total revenue climbing to $15.8 billion, reflecting a 10% increase year-over-year. This surpassed its projected guidance range, emphasizing strong performance amidst dynamic market conditions. Impressively, earnings per share (EPS) showed an increase of 11.2%, resting at $2.29, which exceeded the midpoint of predicted guidance, indicating enhanced operational efficiency and profitability. Moreover, cash generation from operations skyrocketed by 166.4% to reach $562 million, a testament to the company's strong cash management and operational prowess.
TD SYNNEX Results
Revenue Breakdown
The comprehensive breakdown of revenue showcased TD SYNNEX's balanced global footprint:
| Segment | Q4 2024 Revenue | Q4 2023 Revenue | Revenue Growth (%) |
|---|---|---|---|
| Americas | $9.2 billion | $8.4 billion | +10.6% |
| Europe | $5.5 billion | $5.2 billion | +5.5% |
| Asia-Pacific & Japan | $1.1 billion | $0.8 billion | +31.7% |
A remarkable 31.7% growth in the Asia-Pacific and Japan segment underlines TD SYNNEX's capacity to capture expanding market opportunities. Meanwhile, the Americas and Europe regions contribute significantly with steady growth rates, highlighting the company's successful penetration and service offerings across major markets. The analyzed regional performance underscores the company's strategic focus on tapping into high-potential growth regions and optimizing its existing market presence.
Key Developments
TD SYNNEX highlighted several operational achievements throughout fiscal 2024, including cash provided from operations totaling $1.2 billion. Furthermore, the company successfully returned $750 million to its stockholders, divided between $612 million in share repurchases and $138 million dispensed as dividends. This capital return strategy underscores the company's commitment to delivering consistent shareholder value while strategically optimizing its capital structure.
Comments from Company Officers
Patrick Zammit, CEO of TD SYNNEX, attributed the strong financial performance to an expansive product portfolio and a favorable IT market environment. According to Zammit, "Our ability to exploit the growing technology spend and strengthen our market presence has enabled us to deliver significant results." This statement reflects the company’s continued commitment to innovation and market leadership.
Dividends and Share Repurchases
The board of directors declared a Q1 dividend of $0.44 per share, a 10% increase compared to the previous fiscal fourth quarter, illustrating optimistic expectations of sustained growth and a dedication to returning value to shareholders.
TD SYNNEX Stock Forecast
Following the earnings release, TD SYNNEX's stock price fell by approximately 0.92%, with the last recorded price being $122.1 and a market capitalization of $9.78 billion. Despite this slight setback, the company's fundamental health remains robust, supported by solid earnings growth and strategic fiscal maneuvers.
Stock Price Forecast
Based on the fundamental analysis and current market trends, projections for TD SYNNEX's stock price range from a low of $115, reflecting cautious investor sentiment, to a high of $130, considering strong financial performance and growth potential in emerging markets. These projections take into account their solid financial results, optimistic business outlook, and current market capitalization.
TD SYNNEX's strategic initiatives and operational dexterity position it favorably within the high-growth IT sector, paving the way for potential stock price appreciation in the upcoming fiscal periods.
For more in-depth analysis and insights, stay tuned with our platform to stay ahead of the market.
