May 31, 2020

TD Synnex Q2 2020 Earnings Report

TD Synnex's financial performance declined in Q2 2020 due to the impact of the COVID-19 pandemic.

Key Takeaways

TD Synnex reported a decrease in revenue, operating income, and net income for the second quarter of fiscal year 2020. Revenue was $5.53 billion, a 3.3% decrease compared to the prior year. Operating income was $111.7 million, a 36.0% decrease year-over-year. Net income was $57.0 million, a 50.2% decrease compared to the prior year.

Revenue was $5.53 billion, down 3.3% from the prior fiscal year second quarter.

Operating income was $111.7 million, down 36.0% from the prior fiscal year second quarter.

Non-GAAP operating income was $161.5 million, down 33.8% from the prior fiscal year second quarter.

Diluted earnings per share was $1.10, down 50.7% from the prior fiscal year second quarter.

Total Revenue
$5.53B
Previous year: $5.72B
-3.3%
EPS
$1.83
Previous year: $2.86
-36.0%
Gross Profit
$618M
Previous year: $698M
-11.5%
Cash and Equivalents
$1.11B
Previous year: $271M
+309.8%
Free Cash Flow
$1.14B
Previous year: $79.3M
+1331.9%
Total Assets
$12.6B
Previous year: $11.3B
+12.1%

TD Synnex

TD Synnex

Forward Guidance

SYNNEX expects revenue to be in the range of $5.5 billion to $5.9 billion, net income to be in the range of $67.0 million to $93.0 million, and diluted earnings per share to be in the range of $1.29 to $1.79 for the third quarter of fiscal year 2020.

Positive Outlook

  • Revenue is expected to be in the range of $5.5 billion to $5.9 billion.
  • Net income is expected to be in the range of $67.0 million to $93.0 million.
  • On a non-GAAP basis, net income is expected to be in the range of $103.9 million to $129.9 million.
  • Diluted earnings per share is expected to be in the range of $1.29 to $1.79.
  • On a non-GAAP basis, diluted earnings per share is expected to be in the range of $2.00 to $2.50, based on estimated outstanding diluted weighted average shares of 51.3 million.

Challenges Ahead

  • The statements are forward-looking and actual results may differ materially.
  • Impact of COVID-19 or coronavirus, or other pandemics.
  • General economic and market conditions.
  • Any weakness in information technology and consumer electronics spending.
  • The loss or consolidation of one or more of our significant original equipment manufacturer, or OEM, suppliers or customers.