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TD Synnex 8-K Report, Financial Results (Jan 9, 2024)

Reports
Earnings & Results·Exhibits & Filings
Filing Date
Filed January 9, 2024
Period End
January 9, 2024
Security
SNX
In the record · 2016–202610-K1110-Q338-K163

SNX filed 11 annual reports (10-K), 33 quarterly reports (10-Q) and 163 current reports (8-K) between 2016 and 2026.

  1. Leadership change8-K · Oct ’18Oct ’18
  2. Deal closed8-K · Dec ’20Dec ’20
  3. Leadership change8-K · Sep ’22Sep ’22
  4. Material agreement8-K · Sep ’26Sep ’26

01—Abstract

Summary

Summary of the 8-K filed January 9, 2024. Cited figures are marked; the original filing is the authoritative source.

TD SYNNEX Corporation (NYSE: SNX) reported fiscal fourth-quarter 2023 results for the quarter ended November 30, 2023, with revenue of $14.4 billiona, down 11.3% from $16.2 billion a year earlier.

Non-GAAP gross billings were $19.7 billionb, compared with $20.9 billion in the prior-year quarter. GAAP net income was $187.5 million, or $2.06 per diluted share, versus $221.2 million, or $2.31 per diluted share, a year earlier. Non-GAAP diluted EPS was $3.13, compared with $3.44.

The company attributed the revenue decline mainly to lower demand for PC ecosystem products in the Endpoint Solutions portfolio following the post-pandemic period. Gross margin improved to 7.07% from 6.52%, and the filing notes that a greater share of revenue presented on a net basis positively affected margin by approximately 43 basis points. For fiscal 2023, revenue was $57.6 billionc, down 7.7% from $62.3 billion, and GAAP diluted EPS was $6.70 versus $6.77.

Cash provided by operations was $1.4 billiond and free cash flow was $1.3 billion, which exceeded the previously provided free cash flow outlook of $1 billion. The company returned $751 million to shareholders through share repurchases and dividends in fiscal 2023, up 213% from the prior year. The Board declared a quarterly dividend of $0.40 per share, a 14% increase over the prior quarter, payable January 26, 2024.

For fiscal first quarter 2024, management guided to revenue of $14.0 to $14.7 billion, non-GAAP gross billings of $19.0 to $20.0 billion, GAAP diluted EPS of $1.65 to $2.15, and non-GAAP diluted EPS of $2.60 to $3.10. Management said it expects the IT spending environment to rebound in 2024.

02—Key points

Key Highlights

  1. Fiscal Q4 2023 revenue was $14.4 billion, down 11.3% year over year, within the previously provided outlook of $14.0 to $15.0 billion.
  2. Fiscal Q4 2023 GAAP diluted EPS was $2.06 and non-GAAP diluted EPS was $3.13, which exceeded the high end of prior guidance by $0.23.
  3. Fiscal 2023 free cash flow was $1.3 billion, exceeding the previously provided outlook of $1 billion.
  4. Gross margin rose to 7.07% in fiscal Q4 2023 from 6.52% a year earlier, with net-basis revenue presentation contributing about 43 basis points.
  5. Shareholder returns totaled $751 million in fiscal 2023, including $621 million of share repurchases and $130 million of dividends.
  6. The Board declared a Q1 fiscal 2024 quarterly dividend of $0.40 per share, a 14% increase over the prior quarter.
  7. Fiscal Q1 2024 guidance calls for revenue of $14.0 to $14.7 billion and non-GAAP diluted EPS of $2.60 to $3.10.

03—Questions

Frequently Asked Questions

  1. Why did revenue decline in fiscal 2023?

    The filing attributes the decline primarily to a drop in demand for PC ecosystem products within the Endpoint Solutions portfolio, as the industry experienced post-pandemic declines. Fiscal 2023 revenue was $57.6 billion, down 7.7% from $62.3 billion.

  2. What is the dividend and when is it payable?

    The Board declared a quarterly cash dividend of $0.40 per common share, a 14% increase over the prior quarter. It is payable January 26, 2024, to stockholders of record as of the close of business on January 19, 2024.

  3. What guidance did the company provide for fiscal Q1 2024?

    Management guided to revenue of $14.0 to $14.7 billion, non-GAAP gross billings of $19.0 to $20.0 billion, GAAP net income of $147 to $192 million, and GAAP diluted EPS of $1.65 to $2.15. Non-GAAP diluted EPS is expected to be $2.60 to $3.10.

  4. How did free cash flow perform?

    Fiscal 2023 cash provided by operations was $1.4 billion and free cash flow was $1.3 billion, exceeding the previously provided free cash flow outlook of $1 billion. Fiscal Q4 2023 free cash flow was $168 million.

  5. How did profitability compare with the prior year?

    Fiscal Q4 2023 GAAP net income was $187.5 million, versus $221.2 million a year earlier, and non-GAAP net income was $285.6 million, versus $329.8 million. Gross margin improved to 7.07% from 6.52%, although operating income fell to $286.8 million from $334.2 million.

04—Continue

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