How did TD SYNNEX perform in its fiscal fourth quarter of 2024?

Revenue rose 10.0% to $15.8 billion and beat the company's outlook. GAAP net income was $194.8 million, or $2.29 per diluted share, compared with $187.5 million, or $2.06, a year earlier. Non-GAAP net income was $263.4 million, down 7.8%, and non-GAAP diluted EPS was $3.09 versus $3.13.

What drove the change in gross margin?

The company said gross margin fell to 6.6% from 7.1%, primarily due to higher margins in the prior year in strategic technologies and product mix. Presenting additional revenue on a gross basis also reduced gross margin by approximately 16 basis points.

What is the company's outlook for fiscal first quarter 2025?

The company expects revenue of $14.4 - $15.2 billion, non-GAAP gross billings of $19.7 - $20.7 billion, net income of $147 - $189 million, and non-GAAP diluted EPS of $2.65 - $3.15, based on an estimated 83.8 million diluted weighted average shares.

What did the company return to shareholders?

In fiscal 2024, TD SYNNEX returned $750 million to stockholders, consisting of $612 million in share repurchases and $138 million in dividends. The Board declared a quarterly dividend of $0.44 per common share, payable January 31, 2025 to holders of record as of January 24, 2025.

How strong was the company's cash generation in fiscal 2024?

Cash provided by operations was $1.2 billion in fiscal 2024, compared with $1.4 billion in fiscal 2023, and free cash flow was $1.0 billion, compared with $1.3 billion. Fiscal fourth-quarter operating cash flow was $562 million and free cash flow was $513 million.

SNX 8-K: Earnings & Results

01—Abstract

Summary

Summary of the 8-K filed January 10, 2025. Cited figures are marked; the original filing is the authoritative source.

TD SYNNEX Corporation reported results for its fiscal fourth quarter ended November 30, 2024, and fiscal year 2024, according to Exhibit 99.1 (press release dated January 10, 2025).

Fiscal Q4 revenue was $15.8 billion^a, up 10.0% from $14.4 billion a year earlier and above the company's outlook of $14.9 - $15.7 billion. Non-GAAP gross billings were $21.2 billion, compared with $19.7 billion, and GAAP net income was $194.8 million, or $2.29 diluted EPS, versus $2.06 in the prior-year quarter. Non-GAAP diluted EPS was $3.09, compared with $3.13 a year earlier, and non-GAAP net income declined 7.8% to $263.4 million.

The company attributed the gross margin decline to higher prior-year margins in strategic technologies and product mix, and noted that a greater share of revenue presented on a gross basis added roughly 3% to revenue growth. For fiscal 2024, revenue was $58.5 billion^b (up 1.6%), GAAP diluted EPS was $7.95 (up from $6.70), and non-GAAP diluted EPS was $11.68 (up 3.7%). Cash provided by operations was $1.2 billion and free cash flow was $1.0 billion.

The company returned $750 million^c to stockholders in fiscal 2024, including $612 million of share repurchases and $138 million of dividends. Looking ahead, the company guided fiscal first-quarter 2025 revenue to $14.4 - $15.2 billion and non-GAAP diluted EPS to $2.65 - $3.15, and declared a quarterly dividend of $0.44 per share, payable January 31, 2025, which the filing states is up 10% from the prior fiscal fourth quarter. The company stated it anticipates the IT spending environment will continue to improve.

02—Key points

Key Highlights

Fiscal Q4 2024 revenue of $15.8 billion rose 10.0% year over year and came in above the company's $14.9 - $15.7 billion outlook.
Fiscal Q4 GAAP diluted EPS was $2.29 versus $2.06 a year earlier, while non-GAAP diluted EPS fell to $3.09 from $3.13.
Fiscal Q4 non-GAAP gross billings were $21.2 billion, up from $19.7 billion, and above the midpoint of the company's outlook.
Gross margin declined to 6.6% from 7.1% in the prior-year quarter, primarily due to higher prior-year margins in strategic technologies and product mix.
Fiscal 2024 free cash flow was $1.0 billion on cash from operations of $1.2 billion, and the company returned $750 million to stockholders.
Fiscal Q1 2025 guidance calls for revenue of $14.4 - $15.2 billion and non-GAAP diluted EPS of $2.65 - $3.15.
The Board declared a quarterly dividend of $0.44 per share, payable January 31, 2025, described as up 10% from the prior fiscal fourth quarter.

03—Questions

Frequently Asked Questions

How did TD SYNNEX perform in its fiscal fourth quarter of 2024?
Revenue rose 10.0% to $15.8 billion and beat the company's outlook. GAAP net income was $194.8 million, or $2.29 per diluted share, compared with $187.5 million, or $2.06, a year earlier. Non-GAAP net income was $263.4 million, down 7.8%, and non-GAAP diluted EPS was $3.09 versus $3.13.
What drove the change in gross margin?
The company said gross margin fell to 6.6% from 7.1%, primarily due to higher margins in the prior year in strategic technologies and product mix. Presenting additional revenue on a gross basis also reduced gross margin by approximately 16 basis points.
What is the company's outlook for fiscal first quarter 2025?
The company expects revenue of $14.4 - $15.2 billion, non-GAAP gross billings of $19.7 - $20.7 billion, net income of $147 - $189 million, and non-GAAP diluted EPS of $2.65 - $3.15, based on an estimated 83.8 million diluted weighted average shares.
What did the company return to shareholders?
In fiscal 2024, TD SYNNEX returned $750 million to stockholders, consisting of $612 million in share repurchases and $138 million in dividends. The Board declared a quarterly dividend of $0.44 per common share, payable January 31, 2025 to holders of record as of January 24, 2025.
How strong was the company's cash generation in fiscal 2024?
Cash provided by operations was $1.2 billion in fiscal 2024, compared with $1.4 billion in fiscal 2023, and free cash flow was $1.0 billion, compared with $1.3 billion. Fiscal fourth-quarter operating cash flow was $562 million and free cash flow was $513 million.

04—Continue

← View all 8-K filings