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

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

TD SYNNEX Corporation (NYSE: SNX) reported fiscal third-quarter 2024 results for the period ended August 31, 2024, in a press release furnished as Exhibit 99.1.

Revenue was $14.68 billiona, up 5.2% from $13.96 billion a year earlier, and at the upper end of the company's outlook. Non-GAAP gross billings rose 9.1% to $20.28 billion, above the high end of the outlook range of $18.9 to $20.1 billion. GAAP net income was $178.6 million, or $2.08 diluted EPS, compared with $139.3 million, or $1.49, a year earlier.

Non-GAAP net income was $245.4 millionb, or $2.86 non-GAAP diluted EPS, versus $2.78 a year earlier, with non-GAAP net income itself down 5.5%. The company stated that a greater share of revenue was presented on a net basis, which reduced revenue growth by approximately 4% compared with the prior-year quarter, while gross margin fell to 6.54% from 6.96% GAAP. Cash provided by operations was $386 million and free cash flow was $339 million, compared with $592 million and $552 million in the prior-year quarter.

The company returned $91 millionc to stockholders through $57 million of share repurchases and $34 million of dividends, and declared a quarterly dividend of $0.40 per share, up 14% from the prior fiscal third quarter, payable October 25, 2024. For the fiscal fourth quarter of 2024, TD SYNNEX guided to revenue of $14.9 to $15.7 billion, non-GAAP gross billings of $20.5 to $21.5 billion, GAAP diluted EPS of $1.90 to $2.40, and non-GAAP diluted EPS of $2.80 to $3.30, on an estimated 84.5 million diluted weighted average shares.

02—Key points

Key Highlights

  1. Revenue of $14.68 billion rose 5.2% year over year, at the upper end of the company's outlook; constant-currency revenue growth was 5.6%.
  2. Non-GAAP gross billings of $20.28 billion grew 9.1%, above the high end of the company's $18.9 to $20.1 billion outlook.
  3. GAAP diluted EPS was $2.08 versus $1.49 a year earlier, while non-GAAP diluted EPS was $2.86 versus $2.78.
  4. Gross margin declined to 6.54% from 6.96%, which the company attributed mainly to higher prior-year margins in strategic technologies and product mix.
  5. Operating income rose to $302.9 million from $240.2 million, mainly due to lower acquisition, integration and restructuring costs.
  6. Free cash flow was $339 million, down from $552 million, and cash from operations was $386 million, down from $592 million.
  7. The Board declared a quarterly dividend of $0.40 per share, up 14% from the prior fiscal third quarter, payable October 25, 2024 to holders of record on October 11, 2024.

03—Questions

Frequently Asked Questions

  1. How did TD SYNNEX perform against its own outlook in the fiscal third quarter?

    Revenue of $14.7 billion was at the upper end of the outlook range of $13.3 to $14.9 billion. Non-GAAP gross billings of $20.3 billion were above the high end of the $18.9 to $20.1 billion range, and net income and non-GAAP net income were above the midpoint of the company's outlook.

  2. Why did gross margin decline and how did net revenue presentation affect results?

    Gross margin fell to 6.54% from 6.96% on a GAAP basis, which the company primarily attributed to higher prior-year margins in strategic technologies and product mix. The company also said that presenting a greater percentage of revenue on a net basis reduced revenue growth by approximately 4% compared with the prior-year quarter, while positively affecting gross margin by approximately 23 basis points.

  3. What did the company return to shareholders and what is the upcoming dividend?

    During the quarter, TD SYNNEX returned $91 million to stockholders, consisting of $57 million in share repurchases and $34 million in dividends. The Board declared a quarterly cash dividend of $0.40 per common share, payable October 25, 2024 to stockholders of record as of October 11, 2024.

  4. What is the company's outlook for the fiscal fourth quarter of 2024?

    For the quarter, TD SYNNEX expects revenue of $14.9 to $15.7 billion, non-GAAP gross billings of $20.5 to $21.5 billion, GAAP diluted EPS of $1.90 to $2.40, and non-GAAP diluted EPS of $2.80 to $3.30. The outlook assumes an estimated 84.5 million diluted weighted average shares outstanding.

  5. Why did cash flow decline compared with the prior-year quarter?

    Cash provided by operations was $386 million, compared with $592 million in the prior-year quarter, and free cash flow was $339 million, compared with $552 million. The filing reports these figures but does not explain the drivers of the decline in the Form 8-K itself.

04—Continue

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