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TD SYNNEX CORP (SNX - Free Report) shares soared 9.8% on Friday after the company delivered better-than-expected fourth-quarter fiscal 2024 results. The company reported non-GAAP earnings of $3.09 per share for the fiscal fourth quarter, exceeding the Zacks Consensus Estimate of $2.84 and the mid-point of management’s guidance of $2.80-$3.30. However, the bottom line decreased 1.3% on a year-over-year due to higher costs and expenses.
In each of the trailing four quarters, TD SYNNEX’s earnings beat the Zacks Consensus Estimate thrice and missed once, with an average surprise of 1.65%.
SNX’s fourth-quarter revenues jumped 10% year over year to $15.84 billion. The top line surpassed the Zacks Consensus Estimate of $15.29 billion and came above management’s guidance of $14.9-$15.7 billion. The company's end-to-end portfolio, global reach and unique value proposition, which allow it to capture a variety of technology spend and expand its market presence, were the main drivers of the top line.
TD SYNNEX Corporation Price, Consensus and EPS Surprise
Categorically, revenues from Endpoint solutions reached $8.1 billion, up 5% year over year. Revenues from Advanced solutions reached $7.8 billion, up 16% year over year.
The non-GAAP gross profit increased 2.2% year over year to $1.04 billion, while the gross margin contracted 50 basis points (bps) to 6.57%. Adjusted SG&A expenses decreased to $619.4 million from the year-ago quarter’s $592 million. As a percentage of revenues, SG&A expenses decreased 56 bps to 4.52%.
The fourth-quarter non-GAAP operating income was down 1.2% to $421.5 million. The non-GAAP operating margin decreased 30 bps on a year-over-year basis to 2.66%.
TD SYNNEX’s Balance Sheet and Cash Flow Details
TD SYNNEX ended the fourth quarter of fiscal 2024 with cash and cash equivalents of $1.1 billion compared with $853.9 billion at the end of the fiscal third quarter. The company ended fiscal 2024 with a long-term debt of $3.74 billion.
During the reported quarter, SNX generated an operating cash flow of $562 million and a free cash flow of $513 million. In fiscal 2024, the company generated operating cash flow and free cash flow of $1.2 billion and $1 billion, respectively.
During the fourth quarter, SNX returned $136 million to stockholders with $102 million of share repurchases and $34 million of dividend payments. In fiscal 2024, the company bought back shares worth $612 million and paid $138 in dividends.
TD SYNNEX’s FY24 Performance in Brief
Revenues for fiscal 2024 were $58.45 billion, which increased 1.6% from $57.56 billion reported in fiscal 2023. Non-GAAP gross billings were $80.1 billion in fiscal 2024 compared with $77.2 billion in the prior year.
The non-GAAP operating income for fiscal 2024 was down 0.9% to $1.627 billion. The non-GAAP operating margin was 2.78% for fiscal 2024, down 7 bps compared with the previous year’s reported figure. Non-GAAP EPS for fiscal 2024 increased 3.7% year over year to $11.68.
SNX Initiates Guidance for Q1
For the first quarter of fiscal 2025, SNX expects revenues between $14.4 billion and $15.2 billion. Non-GAAP earnings per share are expected in the range of $2.65-$3.15. The Zacks Consensus Estimate for revenues is pegged at $14.8 billion and the consensus mark for earnings is pinned at $2.90 per share, unchanged over the past 60 days.
Non-GAAP net income is expected in the range of $224-$266 million.
BMBL shares have dropped 45.5% for the past year. The Zacks Consensus Estimate for BMBL’s full-year 2025 earnings is pegged at 86 per share, up by a penny over the past 60 days, suggesting an increase of 119.6% from the year-ago quarter’s reported figure.
PL shares have surged 68.6% in the past year. The Zacks Consensus Estimate for PL’s full-year fiscal 2025 loss has contracted to 15 cents from the year-ago quarter’s loss of 50 cents.
STEM shares have declined 75.1% over the past year. The Zacks Consensus Estimate for STEM’s full-year 2025 loss figure is pegged at 49 cents per share, implying a rise of 5.3% from the year-ago quarter’s loss of 52 cents.
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TD SYNNEX Stock Soars 10% on Q4 Earnings Beat & Strong Revenue Growth
TD SYNNEX CORP (SNX - Free Report) shares soared 9.8% on Friday after the company delivered better-than-expected fourth-quarter fiscal 2024 results. The company reported non-GAAP earnings of $3.09 per share for the fiscal fourth quarter, exceeding the Zacks Consensus Estimate of $2.84 and the mid-point of management’s guidance of $2.80-$3.30. However, the bottom line decreased 1.3% on a year-over-year due to higher costs and expenses.
In each of the trailing four quarters, TD SYNNEX’s earnings beat the Zacks Consensus Estimate thrice and missed once, with an average surprise of 1.65%.
Find the latest EPS estimates and surprises on Zacks Earnings Calendar.
SNX’s fourth-quarter revenues jumped 10% year over year to $15.84 billion. The top line surpassed the Zacks Consensus Estimate of $15.29 billion and came above management’s guidance of $14.9-$15.7 billion. The company's end-to-end portfolio, global reach and unique value proposition, which allow it to capture a variety of technology spend and expand its market presence, were the main drivers of the top line.
TD SYNNEX Corporation Price, Consensus and EPS Surprise
TD SYNNEX Corporation price-consensus-eps-surprise-chart | TD SYNNEX Corporation Quote
TD SYNNEX’s Q4 Details
Categorically, revenues from Endpoint solutions reached $8.1 billion, up 5% year over year. Revenues from Advanced solutions reached $7.8 billion, up 16% year over year.
The non-GAAP gross profit increased 2.2% year over year to $1.04 billion, while the gross margin contracted 50 basis points (bps) to 6.57%. Adjusted SG&A expenses decreased to $619.4 million from the year-ago quarter’s $592 million. As a percentage of revenues, SG&A expenses decreased 56 bps to 4.52%.
The fourth-quarter non-GAAP operating income was down 1.2% to $421.5 million. The non-GAAP operating margin decreased 30 bps on a year-over-year basis to 2.66%.
TD SYNNEX’s Balance Sheet and Cash Flow Details
TD SYNNEX ended the fourth quarter of fiscal 2024 with cash and cash equivalents of $1.1 billion compared with $853.9 billion at the end of the fiscal third quarter. The company ended fiscal 2024 with a long-term debt of $3.74 billion.
During the reported quarter, SNX generated an operating cash flow of $562 million and a free cash flow of $513 million. In fiscal 2024, the company generated operating cash flow and free cash flow of $1.2 billion and $1 billion, respectively.
During the fourth quarter, SNX returned $136 million to stockholders with $102 million of share repurchases and $34 million of dividend payments. In fiscal 2024, the company bought back shares worth $612 million and paid $138 in dividends.
TD SYNNEX’s FY24 Performance in Brief
Revenues for fiscal 2024 were $58.45 billion, which increased 1.6% from $57.56 billion reported in fiscal 2023. Non-GAAP gross billings were $80.1 billion in fiscal 2024 compared with $77.2 billion in the prior year.
The non-GAAP operating income for fiscal 2024 was down 0.9% to $1.627 billion. The non-GAAP operating margin was 2.78% for fiscal 2024, down 7 bps compared with the previous year’s reported figure. Non-GAAP EPS for fiscal 2024 increased 3.7% year over year to $11.68.
SNX Initiates Guidance for Q1
For the first quarter of fiscal 2025, SNX expects revenues between $14.4 billion and $15.2 billion. Non-GAAP earnings per share are expected in the range of $2.65-$3.15. The Zacks Consensus Estimate for revenues is pegged at $14.8 billion and the consensus mark for earnings is pinned at $2.90 per share, unchanged over the past 60 days.
Non-GAAP net income is expected in the range of $224-$266 million.
SNX’s Zacks Rank & Stocks to Consider
Currently, SNX carries a Zacks Rank #3 (Hold).
Bumble (BMBL - Free Report) , Planet Labs PBC (PL - Free Report) , and Stem (STEM - Free Report) are some better-ranked stocks that investors can consider in the broader Zacks Computer & Technology sector. BMBL sports a Zacks Rank #1 (Strong Buy), while PL and STEM carry a Zacks Rank #2 (Buy) each at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
BMBL shares have dropped 45.5% for the past year. The Zacks Consensus Estimate for BMBL’s full-year 2025 earnings is pegged at 86 per share, up by a penny over the past 60 days, suggesting an increase of 119.6% from the year-ago quarter’s reported figure.
PL shares have surged 68.6% in the past year. The Zacks Consensus Estimate for PL’s full-year fiscal 2025 loss has contracted to 15 cents from the year-ago quarter’s loss of 50 cents.
STEM shares have declined 75.1% over the past year. The Zacks Consensus Estimate for STEM’s full-year 2025 loss figure is pegged at 49 cents per share, implying a rise of 5.3% from the year-ago quarter’s loss of 52 cents.