May 31, 2021

TD Synnex Q2 2021 Earnings Report

SYNNEX's Q2 fiscal year 2021 results exceeded expectations due to outstanding execution and a positive IT spending environment.

Key Takeaways

SYNNEX Corporation reported strong financial results for the second quarter of fiscal 2021, with revenue up 31.0% year-over-year. The company's performance was driven by outstanding execution and a positive IT spending environment.

Revenue was $5.9 billion, up 31.0% from the prior fiscal second quarter.

Operating income was $148 million, compared to $88 million in the prior fiscal second quarter.

Non-GAAP operating income was $170 million, compared to $102 million in the prior fiscal second quarter.

Preliminary cash generated from operations was approximately $279 million for the quarter.

Total Revenue
$5.86B
Previous year: $5.53B
+5.9%
EPS
$2.09
Previous year: $1.83
+14.2%
Gross Profit
$329M
Previous year: $618M
-46.7%
Cash and Equivalents
$1.66B
Previous year: $1.11B
+48.9%
Free Cash Flow
$274M
Previous year: $1.14B
-75.8%
Total Assets
$8.16B
Previous year: $12.6B
-35.4%

TD Synnex

TD Synnex

Forward Guidance

SYNNEX provided the following statements based on its current expectations for the fiscal 2021 third quarter. These statements are forward-looking and actual results may differ materially.

Positive Outlook

  • Revenue is expected to be in the range of $4.95 billion to $5.45 billion.
  • Net income is expected to be in the range of $84.2 million to $94.7 million and on a non-GAAP basis, net income is expected to be in the range of $99.9 million to $110.4 million.
  • Diluted earnings per share is expected to be in the range of $1.60 to $1.80
  • On a non-GAAP basis, diluted earnings per share is expected to be in the range of $1.90 to $2.10, based on estimated outstanding diluted weighted average shares of 51.9 million.
  • After-tax amortization of intangibles is expected to be $7.0 million, or $0.13 per share.

Challenges Ahead

  • After-tax share-based compensation expense is expected to be $5.3 million, or $0.10 per share.
  • After-tax transaction-related and integration expense is expected to be $3.4 million, or $0.06 per share
  • These statements are forward-looking and actual results may differ materially.
  • The transaction is on track to close in the second half of calendar year 2021, subject to the satisfaction of customary closing conditions, including approval by SYNNEX stockholders and regulatory approvals.
  • Statements included in this press release are based upon information known to SYNNEX Corporation as of the date of this release, and SYNNEX Corporation assumes no obligation to update information contained in this press release.