On September 26, 2024, TD Synnex Corp (SNX, Financial) released its 8-K filing for the fiscal third quarter ended August 31, 2024. TD Synnex Corp is a distributor and solutions aggregator for the IT ecosystem, providing a wide range of IT hardware, software, and systems solutions across the Americas, Europe, and APJ regions.
Performance Overview
TD Synnex Corp (SNX, Financial) reported revenue of $14.7 billion for Q3 FY24, surpassing the analyst estimate of $14.1 billion. The company also reported a diluted earnings per share (EPS) of $2.08, slightly below the estimated $2.17. However, on a non-GAAP basis, the diluted EPS was $2.86, exceeding expectations.
Key Financial Achievements
TD Synnex Corp (SNX, Financial) achieved several notable financial milestones in Q3 FY24:
- Revenue of $14.7 billion, a 5.2% increase from $14.0 billion in Q3 FY23.
- Non-GAAP gross billings of $20.3 billion, up from $18.6 billion in the prior year.
- Net income of $179 million, a 28.2% increase from $139 million in Q3 FY23.
- Operating income of $303 million, a 26.1% increase from $240 million in Q3 FY23.
- Cash provided by operations of $386 million and free cash flow of $339 million.
Income Statement Highlights
| Metric | Q3 FY24 | Q3 FY23 | Change |
|---|---|---|---|
| Revenue | $14,684.7 million | $13,960.6 million | 5.2% |
| Gross Profit | $961.0 million | $971.3 million | -1.1% |
| Operating Income | $302.9 million | $240.2 million | 26.1% |
| Net Income | $178.6 million | $139.3 million | 28.2% |
| Diluted EPS | $2.08 | $1.49 | 39.6% |
Balance Sheet and Cash Flow
TD Synnex Corp (SNX, Financial) reported total assets of $29.2 billion as of August 31, 2024, slightly down from $29.4 billion as of November 30, 2023. The company’s cash and cash equivalents stood at $854 million, down from $1.03 billion. Total liabilities were $21.0 billion, with stockholders' equity at $8.2 billion.
Regional Performance
The company saw growth across all its geographical segments:
- Americas: Revenue of $9.1 billion, a 2.4% increase from $8.9 billion in Q3 FY23.
- Europe: Revenue of $4.6 billion, an 8.6% increase from $4.2 billion in Q3 FY23.
- Asia-Pacific and Japan: Revenue of $1.0 billion, a 17.6% increase from $0.9 billion in Q3 FY23.
Commentary
“Q3 was a strong quarter, reinforcing our optimism regarding IT market recovery. In particular, we saw significant growth across geographic segments and in both our Endpoint and Advanced solutions businesses. Additionally, gross billings in Q3 grew 9%, coming in above the high end of our range,” said Patrick Zammit, CEO of TD SYNNEX.
Analysis
TD Synnex Corp (SNX, Financial) demonstrated robust performance in Q3 FY24, with revenue and non-GAAP EPS exceeding analyst estimates. The company's growth across all geographical segments and strong cash flow generation highlight its resilience and effective execution of its strategy. However, the slight decline in gross profit and the challenges posed by higher margins in the prior year indicate areas for potential improvement.
Overall, TD Synnex Corp (SNX, Financial) remains well-positioned in the IT distribution and solutions aggregation market, with a broad global reach and a diverse product portfolio driving its growth.
Explore the complete 8-K earnings release (here) from TD Synnex Corp for further details.
