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TD SYNNEX (SNX) Q1 Earnings Surpass Estimates, Sales Fall Y/Y
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TD SYNNEX (SNX - Free Report) reported first-quarter fiscal 2024 non-GAAP earnings per share (EPS) of $2.99, beating the Zacks Consensus Estimate of $2.86. The company reported earnings of $3.13 in the previous quarter and $2.93 in the year-ago quarter.
SNX’s quarterly revenues declined 7.6% year over year to $13.97 billion. The top line missed the Zacks Consensus Estimate of $14.37 billion.
The company’s results reflected benefits from market recovery, improving IT demand environment, diversification of portfolio and expansion of global line cards. TD SYNNEX’s PC division experienced growth across the Americas, Asia Pacific and Japan.
TD SYNNEX Corporation Price, Consensus and EPS Surprise
The non-GAAP gross profit declined 0.5% year over year to $1.01 million, while the gross margin improved 52 basis points (bps) to 7.2%. Adjusted SG&A expenses increased to $581.2 million from the year-ago quarter’s $568 million.
In the reported quarter, the non-GAAP operating income was down 4.1% to $424.6 million. However, the non-GAAP operating margin increased 11 bps on a year-over-year basis to 3.04%.
TD SYNNEX ended the fiscal first quarter of 2024 with cash and cash equivalents of $1.03 billion compared with $1.03 billion reported at the end of the fiscal fourth quarter of 2023. During the reported quarter, SNX generated $385 million in cash from operational activities.
The company returned $235 million to shareholders in the first quarter by repurchasing stocks worth $199 million and paying out $36 million in dividends. In this quarter, SNX’s board of directors also approved a quarterly cash dividend of 40 cents per share, which is to be paid on Apr 26, 2024, to shareholders of record as of Apr 12, 2024.
The company also announced an approval for a share repurchase program of up to $2 billion for its common stock, adding to the existing program, which has around $197 million left.
Guidance
SNX issued guidance for the second quarter of fiscal 2024. For the second quarter, it expects to generate revenues between $13.3 billion and $14.9 billion (midpoint $14.1 billion). The Zacks Consensus Estimate is pegged at $14.35 billion for second-quarter 2024.
The non-GAAP net income is estimated in the range of $219-$263 million. Moreover, TD SYNNEX projects non-GAAP EPS between $2.50 and $3 for the second quarter (midpoint $2.75). The consensus mark for second-quarter 2024 non-GAAP EPS is pegged at $2.74.
Zacks Rank and Stocks to Consider
Currently, TD SYNNEX carries a Zacks Rank #3 (Hold). Shares of SNX have climbed 21.7% in the past year.
The Zacks Consensus Estimate for BlackLine’s first-quarter 2024 earnings has remained unchanged at 47 cents per share for the past 90 days. Shares of BL have gained 2% in the past year.
The Zacks Consensus Estimate for Arista Network’s first-quarter 2024 earnings has been revised by 4 cents northward to $1.71 per share in the past 60 days. Shares of ANET have rallied 82.7% in the past year.
The Zacks Consensus Estimate for DELL’s first-quarter 2024 earnings has been revised downward by 5 cents to $1.35 per share in the past seven days. Shares of DELL have skyrocketed 199.3% in the past year.
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TD SYNNEX (SNX) Q1 Earnings Surpass Estimates, Sales Fall Y/Y
TD SYNNEX (SNX - Free Report) reported first-quarter fiscal 2024 non-GAAP earnings per share (EPS) of $2.99, beating the Zacks Consensus Estimate of $2.86. The company reported earnings of $3.13 in the previous quarter and $2.93 in the year-ago quarter.
SNX’s quarterly revenues declined 7.6% year over year to $13.97 billion. The top line missed the Zacks Consensus Estimate of $14.37 billion.
The company’s results reflected benefits from market recovery, improving IT demand environment, diversification of portfolio and expansion of global line cards. TD SYNNEX’s PC division experienced growth across the Americas, Asia Pacific and Japan.
TD SYNNEX Corporation Price, Consensus and EPS Surprise
TD SYNNEX Corporation price-consensus-eps-surprise-chart | TD SYNNEX Corporation Quote
Quarterly Details
The non-GAAP gross profit declined 0.5% year over year to $1.01 million, while the gross margin improved 52 basis points (bps) to 7.2%. Adjusted SG&A expenses increased to $581.2 million from the year-ago quarter’s $568 million.
In the reported quarter, the non-GAAP operating income was down 4.1% to $424.6 million. However, the non-GAAP operating margin increased 11 bps on a year-over-year basis to 3.04%.
TD SYNNEX ended the fiscal first quarter of 2024 with cash and cash equivalents of $1.03 billion compared with $1.03 billion reported at the end of the fiscal fourth quarter of 2023. During the reported quarter, SNX generated $385 million in cash from operational activities.
The company returned $235 million to shareholders in the first quarter by repurchasing stocks worth $199 million and paying out $36 million in dividends. In this quarter, SNX’s board of directors also approved a quarterly cash dividend of 40 cents per share, which is to be paid on Apr 26, 2024, to shareholders of record as of Apr 12, 2024.
The company also announced an approval for a share repurchase program of up to $2 billion for its common stock, adding to the existing program, which has around $197 million left.
Guidance
SNX issued guidance for the second quarter of fiscal 2024. For the second quarter, it expects to generate revenues between $13.3 billion and $14.9 billion (midpoint $14.1 billion). The Zacks Consensus Estimate is pegged at $14.35 billion for second-quarter 2024.
The non-GAAP net income is estimated in the range of $219-$263 million. Moreover, TD SYNNEX projects non-GAAP EPS between $2.50 and $3 for the second quarter (midpoint $2.75). The consensus mark for second-quarter 2024 non-GAAP EPS is pegged at $2.74.
Zacks Rank and Stocks to Consider
Currently, TD SYNNEX carries a Zacks Rank #3 (Hold). Shares of SNX have climbed 21.7% in the past year.
Some better-ranked stocks from the broader technology sector are BlackLine (BL - Free Report) , Arista Networks (ANET - Free Report) and Dell Technologies (DELL - Free Report) , each carrying a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The Zacks Consensus Estimate for BlackLine’s first-quarter 2024 earnings has remained unchanged at 47 cents per share for the past 90 days. Shares of BL have gained 2% in the past year.
The Zacks Consensus Estimate for Arista Network’s first-quarter 2024 earnings has been revised by 4 cents northward to $1.71 per share in the past 60 days. Shares of ANET have rallied 82.7% in the past year.
The Zacks Consensus Estimate for DELL’s first-quarter 2024 earnings has been revised downward by 5 cents to $1.35 per share in the past seven days. Shares of DELL have skyrocketed 199.3% in the past year.