TD Synnex Reports $13.9B Revenue in Q2

TD Synnex reported its fiscal 2024 second-quarter results with revenue of $13.9 billion, slightly down from $14.1 billion in the prior fiscal second quarter. Non-GAAP gross billings reached $19.3 billion, up from $18.7 billion in the prior fiscal second quarter, representing a 3.1% increase. The company's gross margin and non-GAAP gross margin increased by 13 and 9 basis points, respectively, from the prior fiscal second quarter to 6.98%.

Net income for the quarter was $143.6 million, compared to $133.1 million in the prior fiscal second quarter, reflecting a 7.9% increase. The company's diluted earnings per share (EPS) also saw a significant rise, reaching $1.66 from $1.41 in the prior fiscal second quarter, representing a 17.7% increase.

TD Synnex returned $288 million to shareholders in the fiscal second quarter through $254 million of share repurchases and $34 million in dividends, marking a substantial 210% increase from the prior fiscal second quarter. The board of directors declared a quarterly cash dividend of $0.40 per common share, up 14% from the prior fiscal second quarter.

Regionally, the Americas segment saw a 3.5% increase in non-GAAP gross billings, reaching $12.2 billion, while the Europe segment experienced a 1.5% increase, reaching $5.9 billion. In the Asia-Pacific and Japan segment, non-GAAP gross billings rose by 8.7%, reaching $1,195 million.

Looking ahead, for the fiscal 2024 third quarter, TD Synnex expects revenue in the range of $13.3 * $14.9 billion and non-GAAP gross billings between $18.9 * $20.1 billion. The company also provided outlook figures for net income, non-GAAP net income, diluted EPS, and non-GAAP diluted EPS for the upcoming quarter.

TD Synnex's CEO, Rich Hume, expressed confidence in the company's growth prospects for the second half of the fiscal year amidst a recovering market backdrop, noting an improving IT spending environment.

TD Synnex is a leading global distributor and solutions aggregator for the IT ecosystem, serving over 150,000 customers in 100+ countries. The company's edge-to-cloud portfolio includes high-growth technology segments such as cloud, cybersecurity, big data/analytics, AI, IoT, and mobility. As a result of these announcements, the company's shares have moved -9.4% on the market, and are now trading at a price of $117.24. For more information, read the company's full 8-K submission here.

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