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.

Total Revenue
$15.4B
Previous year: $5.21B
+194.9%
EPS
$2.74
Previous year: $2.14
+28.0%
Gross Profit
$916M
Previous year: $313M
+193.0%
Cash and Equivalents
$351M
Previous year: $4.05B
-91.3%
Free Cash Flow
-$99.3M
Previous year: -$60.5M
+64.1%
Total Assets
$29.1B
Previous year: $10.5B
+176.9%

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.