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TD Synnex
🇺🇸 NYSE:SNX
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•
May 31, 2023

TD Synnex Q2 2023 Earnings Report

TD Synnex's financial performance declined slightly due to decreased revenue, but margins expanded and shareholder returns were prioritized.

Key Takeaways

TD Synnex reported a decrease in revenue by 7.9% year-over-year to $14.1 billion, but operating income remained flat at $253 million. The company achieved $30 million in incremental merger-related cost synergies and returned $93 million to shareholders. They are focused on additional cost savings and accelerating shareholder returns.

Revenue decreased by 7.9% year-over-year to $14.1 billion, or 7.0% in constant currency.

Operating income was flat year-over-year at $253 million, while non-GAAP operating income decreased by 5.6% to $376 million.

Diluted EPS was $1.41, a 9.0% decrease year-over-year, and non-GAAP diluted EPS was $2.43, a 10.7% decrease year-over-year.

Cash provided by operations was $708 million for the quarter, and $93 million was returned to shareholders through share repurchases and dividends.

Total Revenue
$14.1B
Previous year: $15.3B
-7.9%
EPS
$2.43
Previous year: $2.72
-10.7%
Gross Profit
$963M
Previous year: $956M
+0.8%
Cash and Equivalents
$852M
Previous year: $522M
+63.4%
Free Cash Flow
$677M
Previous year: $1.01B
-33.3%
Total Assets
$28B
Previous year: $28.1B
-0.3%

TD Synnex

TD Synnex

TD Synnex Revenue by Geographic Location

Forward Guidance

TD SYNNEX expects revenue to be in the range of $13.5 billion to $14.5 billion, and non-GAAP gross billings to be in the range of $18.0 billion to $19.3 billion for the third quarter of fiscal year 2023.

Positive Outlook

  • Revenue is expected to be in the range of $13.5 billion to $14.5 billion.
  • Non-GAAP gross billings are expected to be in the range of $18.0 billion to $19.3 billion.
  • Net income is expected to be in the range of $111 million to $158 million.
  • Non-GAAP net income is expected to be in the range of $206 million to $253 million.
  • Diluted earnings per share is expected to be in the range of $1.19 to $1.69 and on a non-GAAP basis, diluted earnings per share is expected to be in the range of $2.20 to $2.70.

Challenges Ahead

  • Revenue is expected to be in the range of $13.5 billion to $14.5 billion, compared to $15.4 billion in the prior fiscal third quarter.
  • Non-GAAP gross billings are expected to be in the range of $18.0 billion to $19.3 billion, compared to $20.0 billion in the prior fiscal third quarter.
  • Net income is expected to be in the range of $111 million to $158 million.
  • On a non-GAAP basis, net income is expected to be in the range of $206 million to $253 million.
  • Diluted earnings per share is expected to be in the range of $1.19 to $1.69 and on a non-GAAP basis, diluted earnings per share is expected to be in the range of $2.20 to $2.70.

Revenue & Expenses

Visualization of income flow from segment revenue to net income

Company Overview

Full financial data and analysis

View TD Synnex