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Aug 31, 2022
TD Synnex Q3 2022 Earnings Report
TD Synnex demonstrated solid execution with revenue growth and increased profitability.
Key Takeaways
TD Synnex reported a strong Q3 with revenue of $15.4 billion, up 194.9% year-over-year, and operating income of $242 million. The company made significant progress on merger integration, exceeding targets for non-GAAP EPS accretion and cost synergy attainment.
Revenue was $15.4 billion in the fiscal third quarter of 2022, up 194.9% from the prior fiscal third quarter primarily due to the impact of the completion of the merger with Tech Data on September 1, 2021.
On a sequential basis, revenue increased approximately 1% compared to the prior quarter.
Operating income was $242 million, compared to $253 million in the prior quarter and $148 million in the prior fiscal third quarter.
Cash used in operations was approximately $67 million for the quarter primarily due to working capital investments to support growth in the business.
TD Synnex
TD Synnex
Forward Guidance
TD SYNNEX' current expectations for the fiscal 2022 fourth quarter include revenue between $15.2 billion and $16.2 billion, net income between $138 million and $177 million (non-GAAP net income between $259 million and $298 million), and diluted earnings per share between $1.44 and $1.84 (non-GAAP diluted earnings per share between $2.70 and $3.10).
Positive Outlook
- Revenue is expected to be in the range of $15.2 billion to $16.2 billion.
- Net income is expected to be in the range of $138 million to $177 million and on a non-GAAP basis, net income is expected to be in the range of $259 million to $298 million.
- Diluted earnings per share is expected to be in the range of $1.44 to $1.84 and on a non-GAAP basis, diluted earnings per share is expected to be in the range of $2.70 to $3.10.
- Estimated outstanding diluted weighted average shares of 95.2 million.
- The dividend is payable on October 28, 2022 to stockholders of record as of the close of business on October 14, 2022.