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TD Synnex 8-K Report, Financial Results (Mar 26, 2024)

Reports
Earnings & Results·Other Events·Exhibits & Filings
Filing Date
Filed March 26, 2024
Period End
March 26, 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 March 26, 2024. Cited figures are marked; the original filing is the authoritative source.

TD SYNNEX Corporation (SNX) reported fiscal first quarter 2024 results for the quarter ended February 29, 2024, and announced a new $2 billiona share repurchase authorization and a quarterly cash dividend of $0.40 per common share.

Revenue was $13.98 billionb, down 7.6% from $15.13 billion in the prior fiscal first quarter, and the company stated that a greater share of revenue presented on a net basis reduced revenue by approximately 3%. Non-GAAP gross billings were $19.27 billion, down 4.6%. Gross margin rose to 7.20% from 6.63%, up 57 bps, and the company attributed about 23 basis points of that improvement to the net presentation of certain revenue.

Profitability and cash generation were mixed to positive. Net income was $172.1 millionc, up 3.1%, and diluted EPS was $1.93, up 10.3%. Non-GAAP diluted EPS was $2.99, up 2.1%, at the upper end of the company's outlook.

Non-GAAP net income declined 4.7% to $266.2 milliond, and non-GAAP operating income fell 4.1% to $424.6 million. Cash provided by operations was $384.7 million and free cash flow was $343.6 million, compared with cash used in operations of $102.8 million and free cash flow of negative $140.1 million a year earlier. Total cash returned to shareholders was $235 million, including $199 million of share repurchases and $36 million of dividends.

For the fiscal second quarter ending May 31, 2024, the company outlined revenue of $13.3 to $14.9 billion, non-GAAP gross billings of $18.4 to $19.6 billion, and non-GAAP diluted EPS of $2.50 to $3.00. The new $2 billion authorization supplements an existing program with approximately $197 million remaining, and the dividend is payable April 26, 2024 to holders of record as of April 12, 2024.

02—Key points

Key Highlights

  1. Revenue of $13.98 billion, down 7.6% year over year and within the company's outlook of $14.0 to $14.7 billion (as stated, with the reported figure at the low end of that range).
  2. Gross margin of 7.20%, up 57 bps from 6.63%, with the company citing record margins and attributing about 23 basis points to net revenue presentation.
  3. Diluted EPS of $1.93, up 10.3%; non-GAAP diluted EPS of $2.99, up 2.1% and at the upper end of the outlook.
  4. Free cash flow of $343.6 million versus negative $140.1 million in the prior-year quarter; cash from operations of $384.7 million.
  5. New $2 billion share repurchase authorization approved, supplementing an existing program with approximately $197 million remaining.
  6. Quarterly cash dividend of $0.40 per common share, up 14% from the prior fiscal year, payable April 26, 2024.
  7. Q2 FY2024 outlook: revenue of $13.3 to $14.9 billion, non-GAAP diluted EPS of $2.50 to $3.00, and 86.8 million estimated diluted weighted average shares.

03—Questions

Frequently Asked Questions

  1. How did TD SYNNEX perform on revenue and gross billings in the fiscal first quarter?

    Revenue was $13.98 billion, down 7.6% from $15.13 billion, and the company said constant-currency revenue fell 8.3%. Non-GAAP gross billings were $19.27 billion, down 4.6%. The company said a greater share of revenue presented on a net basis reduced revenue by about 3%.

  2. Did profitability improve in the quarter?

    GAAP net income rose 3.1% to $172.1 million and GAAP diluted EPS rose 10.3% to $1.93. Non-GAAP net income fell 4.7% to $266.2 million, and non-GAAP operating income fell 4.1% to $424.6 million, while non-GAAP diluted EPS was $2.99, up 2.1%.

  3. What capital return actions did the company announce?

    The board approved a new share repurchase program of up to $2 billion, supplementing the existing program with approximately $197 million remaining. It also declared a quarterly cash dividend of $0.40 per share, payable April 26, 2024 to holders of record as of April 12, 2024. In the quarter, the company returned $235 million to shareholders.

  4. What is the outlook for the fiscal second quarter?

    For the quarter ending May 31, 2024, the company expects revenue of $13.3 to $14.9 billion, non-GAAP gross billings of $18.4 to $19.6 billion, net income of $139 to $183 million, and non-GAAP diluted EPS of $2.50 to $3.00, based on an estimated 86.8 million diluted weighted average shares.

  5. How did cash flow compare with the prior year?

    Cash provided by operations was $384.7 million and free cash flow was $343.6 million, compared with cash used in operations of $102.8 million and free cash flow of negative $140.1 million in the prior fiscal first quarter.

04—Continue

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