The market expects TD SYNNEX (SNX) to deliver a year-over-year decline in earnings on higher revenues when it reports results for the quarter ended May 2025. This widely-known consensus outlook is important in assessing the company's earnings picture, but a powerful factor that might influence its near-term stock price is how the actual results compare to these estimates.The stock might move higher if these key numbers top expectations in the upcoming earnings report, which is expected to be released on Jun ...

Financial Performance - For the three months ended February 28, 2025, the company's revenue was 100% of total revenue, with a gross profit margin of 6.87%, down from 7.20% in the same period last year[111]. - The cost of revenue increased to 93.13% of total revenue compared to 92.80% in the prior year, indicating rising costs impacting profitability[111]. - Operating income for the period was 2.10%, slightly down from 2.17% year-over-year, reflecting ongoing challenges in maintaining margins[111]. - The company reported a net income of 1.15% of total revenue, a decrease from 1.23% in the previous year, highlighting a decline in overall profitability[111]. - Consolidated revenue for the three months ended February 28, 2025, was $14,531,707, representing a 4.0% increase from $13,975,253 in the prior year[118]. - Revenue for the three months ended February 28, 2025, was $1,004,604,000, an increase of 5.2% compared to $954,905,000 for the same period in 2024[139]. - Net income for the three months ended February 28, 2025, was $167,537,000, down from $172,128,000 in the prior year[147]. Strategic Initiatives - The company plans to invest in strategic technologies such as hybrid cloud, security, data analytics, AI, and hyperscale infrastructure to enhance its service offerings[108]. - The merger with Tech Data Corporation was completed for a total consideration of $1.6 billion in cash and approximately $5.6 billion in SYNNEX stock, aimed at expanding capabilities and market reach[110]. - The company is focused on expanding its global footprint and enhancing operational excellence across its businesses[108]. - The strategic focus includes strengthening the end-to-end portfolio of products and services, including technology-as-a-service and recurring revenue models[108]. Cost and Expenses - Selling, general and administrative expenses increased by 3.1% to $692,485, representing 4.77% of revenue, slightly down from 4.81%[126]. - Operating income decreased by 28.1% to $24,845,000 from $34,565,000 year-over-year, primarily due to a decrease in strategic technologies gross margins[139]. - Non-GAAP operating income also decreased by 25.6% to $27,108,000 from $36,441,000[139]. - Interest expense and finance charges increased by 15.8% to $87,880,000 compared to $75,891,000 in the prior year[141]. - Provision for income taxes decreased by 8.4% to $47,346,000 from $51,669,000, reflecting lower income and a slightly lower effective tax rate[145]. Revenue Breakdown - Revenue in constant currency increased by $840.2 million, driven by growth in Endpoint Solutions and Advanced Solutions portfolios, partially offset by a negative impact of approximately $490 million due to changes in product mix[119]. - Americas revenue increased by $486.2 million to $8,389,338, with a constant currency increase of $552.5 million, despite a negative impact of approximately $150 million from product mix changes[120]. - Europe revenue increased by $20.5 million to $5,137,765, with a constant currency increase of $219.2 million, negatively impacted by approximately $200 million from product mix changes[121]. - APJ revenue increased by $49.7 million to $1,004,604, with a constant currency increase of $68.5 million, negatively impacted by approximately $130 million from product mix changes[122]. Cash Flow and Financing - Net cash used in operating activities was $748.0 million, a significant decrease from net cash provided of $384.7 million in the prior year[153]. - Net cash provided by financing activities was $288.6 million, compared to net cash used of $311.2 million in the prior year, driven by increased short-term borrowings[155]. - The company entered into a $750.0 million Term Loan Credit Agreement, maturing on September 1, 2027, to repay a portion of the TD SYNNEX Term Loan[161]. - As of February 28, 2025, the company had total outstanding borrowings of approximately $4.3 billion, including Senior Notes of $2.4 billion and term loans of approximately $1.3 billion[164]. - The company had $1.3 billion of trade accounts receivable sold to financial institutions under purchase agreements as of February 28, 2025, with discount fees totaling $12.0 million for the three months ended February 28, 2025[165]. - A new $2.0 billion share repurchase program was authorized in March 2024, supplementing the previous $1.0 billion program, with $1.7 billion available for future repurchases as of February 28, 2025[166]. - The company repurchased 0.7 million shares for $100.5 million in the three months ended February 28, 2025, compared to 2.0 million shares for $199.2 million during the same period in 2024[166]. - As of February 28, 2025, the company had a borrowing capacity of approximately $566.0 million, with $201.0 million outstanding at a weighted average interest rate of 5.78%[162]. Compliance and Risk Management - As of February 28, 2025, the company was in compliance with all material financial covenants related to its credit facilities[167]. - The company has historically renewed its accounts receivable securitization program and parent company credit facilities prior to expiration, maintaining good credit standing[163]. - There were no material changes to the company's critical accounting policies and estimates during the three months ended February 28, 2025[168]. - No material changes in market risks have occurred since November 30, 2024, as disclosed in the company's Annual Report[170].

I wrote about TD Synnex Corp. (NYSE: SNX ) previously (in January 2025) with a buy rating, as I was very bullish about the growth outlook, especially with regard to the strong demand from data center Analyst's Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking ...

TD SYNNEX CORP (SNX) reported non-GAAP earnings of $2.80 per share for the first-quarter fiscal 2025, which missed the Zacks Consensus Estimate by 2.44%. The bottom line declined 6.4% year over year due to rising expenses.Find the latest EPS estimates and surprises on Zacks Earnings Calendar.SNX’s revenues increased 4% year over year to $14.53 billion but missed the consensus mark by 1.78%.On a constant-currency (cc) basis, revenues represent 6% year-over-year growth, driven by advancements in the Endpoint ...

Financial Data and Key Metrics Changes - Gross billings increased by 7.5% year over year in Q1, and 9.5% in constant currency, reaching $20.7 billion [7][22] - Net revenue was $14.5 billion, up 4% year over year, with a gross to net adjustment of approximately 30% [23][30] - Gross profit was $1 billion, representing 4.82% of gross billings, with a year-over-year decline of 40 basis points [24] - Non-GAAP net income was $237 million, with diluted earnings per share at $2.80, both within guidance range [27][30] Business Line Data and Key Metrics Changes - Advanced Solutions grew by 7% year over year, driven by demand for integrated IT solutions [7][23] - Endpoint solutions grew by 8% year over year, with growth across PCs and mobile [7][23] - Hive experienced double-digit growth year over year but was below expectations due to component shipment delays and demand shortfalls [8][39] Market Data and Key Metrics Changes - Latin America and APJ regions grew by double digits in Q1 in constant currency, indicating strong market performance [11][12] - The company expanded its reach to 30,000 active partners and 500,000 end users through its cloud marketplace [10] Company Strategy and Development Direction - The company focuses on profitable growth and free cash flow, with a commitment to mid-single-digit gross billings growth for fiscal 2025 [21][33] - The strategy includes enhancing digital capabilities and expanding partnerships in high-growth markets [10][16] - The company aims to adapt to the evolving IT landscape, driven by trends such as cloud, cybersecurity, and AI [12][20] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the normalization of business conditions despite temporary softness in Hive [9][40] - The company remains optimistic about the demand environment and its ability to grow, particularly in strategic technologies [42][78] - Management highlighted the importance of maintaining specialized resources to support future demand [61][68] Other Important Information - The company returned $138 million to stockholders in Q1, including $101 million in share repurchases and $37 million in dividends [28] - The Board of Directors approved a cash dividend of $0.44 per common share, payable on April 25, 2025 [29] Q&A Session Summary Question: Can you provide more details on Hive and the reasons for the softer demand? - Management acknowledged that Hive experienced double-digit growth but faced temporary demand pauses and shipment delays, which are expected to normalize in Q2 [39][40] Question: Did you see any pre-buying by customers to avoid tariff increases? - Management indicated that the impact of tariffs has been limited, with growth driven by PC refresh cycles rather than pre-buying [46][48] Question: What are the expectations regarding price increases from vendors? - Management noted that while some vendors are increasing prices, it is not widespread and is being monitored closely [54] Question: Can you clarify the impact of Hive on cash flow and capital allocation? - Management explained that elevated inventory and payables impacted cash flow, but they expect recovery in cash conversion days moving forward [63][67] Question: How does the company view its geographic exposure relative to competitors? - Management highlighted strong market positions in North America and Europe, with opportunities for growth in Latin America and APJ [99][100]

Market Overview - U.S. stocks traded lower, with the Dow Jones index falling approximately 90 points, down 0.23% to 42,358.68, NASDAQ down 0.05% to 17,890.40, and S&P 500 down 0.04% to 5,709.99 [1] - Consumer discretionary shares increased by 1.2%, while information technology shares decreased by 0.3% [1] Company Performance - TD SYNNEX Corp's shares dropped around 18% after reporting first-quarter revenue of $14.53 billion, which was a 4.0% year-over-year increase but missed analyst expectations of $14.79 billion. The adjusted EPS was $2.80, below the expected $2.91 [2] Commodity Market - Oil prices increased by 0.1% to $69.68, gold rose by 1.3% to $3,062.40, silver went up by 1% to $34.555, while copper fell by 2.6% to $5.1035 [5] European Market - European shares declined, with the eurozone's STOXX 600 down 0.57%, Germany's DAX 40 down 0.87%, and France's CAC 40 down 0.42% [6] Asian Market - Asian markets closed mostly higher, with Japan's Nikkei 225 down 0.60%, while China's Shanghai Composite Index, Hong Kong's Hang Seng Index, and India's BSE Sensex all saw gains of 0.15%, 0.41%, and 0.41% respectively [7] Notable Stock Movements - Soleno Therapeutics, Inc. shares surged 41% to $69.22 after FDA approval for its first commercial drug [9] - Greenland Technologies Holding Corporation shares increased by 62% to $2.09 following a year-over-year EPS increase [9] - Dermata Therapeutics, Inc. shares rose 26% to $1.6996 after positive Phase 3 trial results [9] - Nxu, Inc. shares fell 38% to $0.1641 due to a 1-for-20 reverse stock split [9] - Equillium, Inc. shares dropped 34% to $0.4878 after disappointing Phase 3 study results [9] - Auddia Inc. shares decreased by 30% to $0.2345 following a 1-for-17 reverse stock split [9]

TD SYNNEX (SNX) reported $14.53 billion in revenue for the quarter ended February 2025, representing a year-over-year increase of 4%. EPS of $2.80 for the same period compares to $2.99 a year ago.The reported revenue compares to the Zacks Consensus Estimate of $14.79 billion, representing a surprise of -1.78%. The company delivered an EPS surprise of -2.44%, with the consensus EPS estimate being $2.87.While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Stree ...

TD SYNNEX (SNX) came out with quarterly earnings of $2.80 per share, missing the Zacks Consensus Estimate of $2.87 per share. This compares to earnings of $2.99 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of -2.44%. A quarter ago, it was expected that this high-tech contractor would post earnings of $3.06 per share when it actually produced earnings of $3.09, delivering a surprise of 0.98%.Over the last four quarters, the com ...

Revenue Performance - Revenue for Q1 FY25 was $14.5 billion, a 4.0% increase from Q1 FY24, with a 6.0% increase on a constant currency basis[4] - Consolidated revenue for Q1 FY25 was $14,531.7 million, an increase of 4.0% from $13,975.3 million in Q1 FY24[34] - TD SYNNEX reported revenue of $14,531.7 million for the three months ended February 28, 2025, an increase of 4% compared to $13,975.3 million for the same period in 2024[28] - The Americas region generated $8.4 billion in revenue, a 6.2% increase from the prior fiscal first quarter[7] - The Europe region reported revenue of $5.1 billion, a 0.4% increase year-over-year[11] - The Asia-Pacific and Japan region saw revenue of $1.0 billion, a 5.2% increase compared to the prior fiscal first quarter[11] Earnings and Income - Diluted EPS for Q1 FY25 was $1.98, a 2.6% increase from $1.93 in Q1 FY24[4] - The company's net income for the same period was $167.5 million, slightly down from $172.1 million year-over-year[28] - Non-GAAP net income for the three months ended February 28, 2025, was $237,371 thousand, a decrease of 10.8% from $266,223 thousand for the same period in 2024[44] - Non-GAAP diluted EPS for the three months ended February 28, 2025, was $2.80, down 6.4% from $2.99 in the prior year[44] Operating Performance - Operating income was $304.5 million, a slight increase of 0.6% from $302.6 million in the prior year[3] - Operating income for the trailing fiscal four quarters was $1,196,098 thousand, an increase of 10.5% from $1,082,442 thousand in the previous year[48] - Non-GAAP operating income for the consolidated entity was $398.8 million, a decrease from $424.6 million in the prior year[40] - Non-GAAP operating margin for consolidated operations was 2.74%, down from 3.04% in Q1 FY24[40] Cash Flow and Liquidity - Cash used in operations was $748 million, compared to cash provided by operations of $385 million in the prior fiscal first quarter[7] - Free cash flow was negative at $(748.0) million for the three months ended February 28, 2025, compared to positive cash flow of $384.7 million for the same period in 2024[30] - Free cash flow for the three months ended February 28, 2025, was $(789,522) thousand, compared to $343,621 thousand in the same period last year[46] - The cash conversion cycle increased to 27 days for the three months ended February 28, 2025, compared to 21 days in the same period last year[50] Forecast and Guidance - For Q2 FY25, the company expects revenue between $13.9 billion and $14.7 billion, with non-GAAP gross billings projected at $19.7 billion to $20.7 billion[8] - The forecast for non-GAAP net income for the three months ending May 31, 2025, ranges from $205 million to $247 million[46] - The forecasted non-GAAP gross billings for the three months ending May 31, 2025, is expected to be between $19.7 billion and $20.7 billion[46] Asset and Liability Management - Total current assets decreased to $19,958.9 million as of February 28, 2025, from $21,324.7 million as of November 30, 2024[26] - Total liabilities decreased to $20,745.7 million as of February 28, 2025, from $22,239.0 million as of November 30, 2024[26] - The company’s cash and cash equivalents decreased to $541.9 million as of February 28, 2025, from $1,059.4 million as of November 30, 2024[26] Segment Performance - Operating income for the Americas segment increased by 21.3% to $193.7 million, compared to $159.7 million in Q1 FY24[32] - Revenue in the Americas was $8,389.3 million, reflecting a 6.2% growth from $7,903.1 million in Q1 FY24[32] - Europe segment revenue slightly increased by 0.4% to $5,137.8 million, while operating income decreased by 20.7% to $85.9 million[32] - Asia-Pacific and Japan revenue grew by 5.2% to $1,004.6 million, but operating income fell by 28.3% to $24.8 million[32] Other Financial Metrics - Non-GAAP gross billings reached $20.7 billion, up 7.5% year-over-year, and increased by 9.5% in constant currency[4] - Non-GAAP gross billings reached $20,718.2 million, up 7.5% from $19,266.7 million in the previous year[36] - Adjusted selling, general and administrative expenses as a percentage of revenue decreased to 4.77% from 5.03% year-over-year[38] - The impact of foreign currency changes contributed an additional $283.7 million to consolidated revenue[34] - Days inventory outstanding increased to 56 days for the three months ended February 28, 2025, compared to 50 days in the prior year[50] Management Insights - TD SYNNEX management emphasizes the importance of non-GAAP financial measures for understanding operational results and trends[20] - The company incurred acquisition, integration, and restructuring costs of $1.1 million for the three months ended February 28, 2025, down from $31.6 million in the prior year[28] - Share-based compensation expense for the three months ended February 28, 2025, was $21.9 million, compared to $17.5 million for the same period in 2024[30] - Return on Invested Capital (ROIC) improved to 8.4% for the three months ended February 28, 2025, compared to 7.5% in the prior year[48]

Company Overview - Siteimprove has appointed Nayaki Nayyar as the new Chief Executive Officer (CEO) and Board Member, aiming to drive innovation and growth within the company [1][2] - The company is recognized as a leading AI-powered SaaS platform that focuses on delivering compliant and accessible digital content experiences [1][4] Leadership Background - Nayaki Nayyar brings over 25 years of experience in enterprise software, having previously served as CEO at Securonix, where she led significant transformation and innovation [2] - Her career includes leadership roles at Ivanti, SAP, and BMC Software, contributing to substantial growth and strategic expansions [2] - John Damgaard has been appointed as Chairman of the Board, bringing extensive experience from his previous role as CEO of VelocityEHS [3] Strategic Vision - Nayyar emphasizes the importance of an AI-powered platform that integrates accessibility, analytics, and search engine optimization to help enterprises achieve their revenue, reputation, and compliance goals [3] - The company plans to enhance its accessibility capabilities with content intelligence, aiming to maximize customer reach and return on digital assets [3] Market Position and Future Plans - Siteimprove is positioned as a leader in the industry, with new products set to launch in 2025 under Nayyar's leadership [3] - The company serves a diverse client base across various sectors, including manufacturing, government, higher education, financial services, and healthcare [4]