Zinger Key Points
- TD SYNNEX Q4 revenue rose 10% Y/Y to $15.85B, beating estimates; adjusted EPS of $3.09 exceeded $3.05 consensus.
- Increased dividend by 10% to $0.44/share; expects Q1 adjusted EPS of $2.65-$3.15 and revenue of $14.4-$15.2B.
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TD SYNNEX Corp SNX shares are trading higher on Friday after the company reported its fourth-quarter results.
Quarterly revenue of $15.85 billion, up 10% Y/Y, exceeded the analyst view of $15.22 billion.
The Fremont, California-based company reported an adjusted EPS of $3.09, beating the street view of $3.05.
On a constant currency basis, revenue increased 9.2%, led by growth in both the Advanced Solutions and Endpoint Solutions portfolios.
Adjusted gross billings were $21.2 billion in the quarter under review, compared to $19.7 billion in the prior-year quarter.
Gross profit rose to $1.04 billion from $1.02 billion in the prior year quarter, while margin declined to 6.6% from 7.1%.
Adjusted operating income stood at $422 million versus $427 million a year ago quarter, with an adjusted margin of 2.7% versus 3.0% in the same period last year.
TD SYNNEX returned $136 million to shareholders through share repurchases and dividends.
Dividend: TD SYNNEX’s Board of Directors raised a quarterly cash dividend by 10% to $0.44 per share, payable on January 31, to stockholders of record as of January 24.
Outlook: TD SYNNEX expects first-quarter adjusted EPS of $2.65 – $3.15, compared to the estimate of $2.95.
The company projects revenue of $14.4 billion – $15.2 billion, vs. the estimated $14.769 billion.
Patrick Zammit, CEO of TD SYNNEX, said, “Gross billings in Q4 grew 7% year-over-year and we returned 72% of our free cash flow to shareholders in fiscal year 2024. Building on our momentum, we believe we’re well-positioned for the year ahead as we anticipate the IT spending environment will continue to improve.”
Investors can gain exposure to the stock via Tidal Trust III Rockefeller U.S. Small-Mid Cap ETF RSMC and Invesco Exchange-Traded Fund Trust II Invesco S&P MidCap 400 Revenue ETF RWK.
Price Action: SNX shares are up 5.84% at $129.23 at the last check Friday.
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