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Aug 31, 2021

TD Synnex Q3 2021 Earnings Report

TD Synnex reported results consistent with expectations despite supply chain shortages, focusing on optimizing core business and increasing value-added services and products, leading to improved margin performance.

Key Takeaways

TD Synnex reported a slight year-over-year revenue decline for legacy SYNNEX due to ongoing industry-wide supply chain shortages, but the team executed flawlessly, focusing on optimizing the core business and increasing value-added services and products, leading to improved margin performance.

Revenue was $5.2 billion, down 1.9% from the prior fiscal third quarter.

Operating income was $148 million, compared to $132 million, in the prior fiscal third quarter.

Non-GAAP operating income was $168 million, in fiscal year third quarter 2021, compared to $149 million, in the prior fiscal third quarter.

The trailing fiscal third quarter Return on Invested Capital (“ROIC”) was 17.5% compared to 12.5% in the prior fiscal year third quarter.

Total Revenue
$5.21B
Previous year: $6.47B
-19.5%
EPS
$2.14
Previous year: $3.33
-35.7%
Gross Profit
$313M
Previous year: $708M
-55.9%
Cash and Equivalents
$4.05B
Previous year: $1.45B
+178.9%
Free Cash Flow
-$60.5M
Previous year: $278M
-121.8%
Total Assets
$10.5B
Previous year: $13.3B
-20.8%

TD Synnex

TD Synnex

Forward Guidance

Revenue is expected to be in the range of $15 billion to $16 billion. Net income is expected to be in the range of $38 million to $106 million and on a non-GAAP basis, net income is expected to be in the range of $242 million to $272 million. Diluted earnings per share is expected to be in the range of $0.39 to $1.09 and on a non-GAAP basis, diluted earnings per share is expected to be in the range of $2.50 to $2.80, based on estimated outstanding diluted weighted average shares of 96.2 million.