TD Synnex (NYSE: SNX) has reported its fiscal 2024 first-quarter results, revealing several key metrics that demonstrate the company's performance.
In the first quarter of fiscal 2024, TD Synnex reported revenue of $13.98 billion, representing a 7.6% decrease from the prior fiscal first quarter. Non-GAAP gross billings stood at $19.27 billion, reflecting a 4.6% decrease from the prior fiscal first quarter.
The company's gross margin and non-GAAP gross margin increased by 57 and 52 basis points, respectively, compared to the prior fiscal first quarter, reaching 7.20% and 7.20%.
Net income for the first quarter was $172 million, while non-GAAP net income was reported at $266 million. Diluted earnings per share ("EPS") stood at $1.93, and non-GAAP diluted EPS was $2.99, representing a 10.3% and 2.1% increase, respectively, from the prior fiscal first quarter.
Additionally, TD Synnex generated cash provided by operations of $385 million and free cash flow of $344 million, a significant improvement from the prior fiscal first quarter when the company experienced cash used in operations of $103 million and free cash flow of negative $140 million.
The company also returned $235 million to shareholders in the first quarter, representing a 59% increase from the prior fiscal first quarter. This was accomplished through $199 million of share repurchases and $36 million in dividends.
Furthermore, the board of directors approved a new $2 billion share repurchase authorization, supplementing the existing program, of which approximately $197 million remains. TD Synnex also announced a quarterly cash dividend of $0.40 per common share, marking a 14% increase from the prior fiscal year.
In terms of regional highlights, the Americas region reported a decrease in revenue by 8.5% to $7.9 billion, while the Europe region experienced a 7.3% decrease in revenue to $5.1 billion. The Asia-Pacific and Japan region saw a marginal 1.2% decrease in revenue to $955 million.
Looking ahead, TD Synnex provided its fiscal 2024 second-quarter outlook, forecasting revenue in the range of $13.3 * $14.9 billion and non-GAAP gross billings between $18.4 * $19.6 billion.
The company also announced its share repurchase program of up to $2 billion of its common stock, as well as a quarterly cash dividend of $0.40 per common share.
These results demonstrate TD Synnex's ability to navigate challenging market conditions and continue to drive shareholder value while focusing on strategic growth opportunities in the IT ecosystem. Following these announcements, the company's shares moved 8.0%, and are now trading at a price of $113.92. For more information, read the company's full 8-K submission here.
