TD Synnex Q4 Earnings Beat Estimates; Provides Upbeat Outlook

TD Synnex Corp SNX reported fourth-quarter FY21 revenue growth of 155.1% year-over-year to $15.61 billion, beating the consensus of $14.25 billion.

• The increased revenue reflects the completion of the merger with Tech Data on September 1, 2021.
• Adjusted EPS improved 1.4% Y/Y to $2.86, beating the consensus of $2.67.
• The operating income decreased by 7.5% Y/Y to $185.36 million, and the margin contracted by 208 bps to 1.2%. Adjusted operating margin declined by 100 bps to 2.6%.
• Adjusted EBITDA was $435.4 million (+89.2% Y/Y), and margin contracted by 100 bps to 2.8%.
• The trailing fiscal four quarters ROIC was 13.1% compared to 14.6% in the prior year, and the adjusted ROIC was 16%.
• TD Synnex generated cash from operating activities for the fiscal year of $809.79 million, compared to $1.38 billion a year ago. Free cash flow of $754.89 million.
• The company held cash and equivalents of $993.97 million as of November 30, 2021.
• Dividend: TD Synnex increased its quarterly dividend by 50% compared to the prior quarter to $0.30/share, payable on January 28, 2022, to stockholders of record on January 21, 2022.
• 1Q22 Outlook: TD Synnex expects revenue of $14.75 billion - $15.75 billion, above the consensus of $14.57 billion. It sees non-GAAP EPS of $2.55 - $2.85, above the consensus of $2.44.
• FY22 Outlook: TD Synnex expects non-GAAP EPS of $10.80 - $11.20 versus the consensus of $10.40.
• Price Action: SNX shares are trading higher by 2.91% at $113.00 during the premarket session on Tuesday.