Financial Data and Key Metrics Changes - Gross billings in Q3 2024 were $20.3 billion, up 9% year-over-year, exceeding the high end of guidance [10] - Non-GAAP gross profit was $961 million, representing 4.7% of gross billings, down 1% year-over-year [11] - Non-GAAP operating income was $393 million, down 1% year-over-year, with a non-GAAP operating margin of 1.9% of gross billings, down 20 basis points year-over-year [12] - Total non-GAAP net income was $245 million, with non-GAAP diluted EPS of $2.86, slightly above the midpoint of guidance [13] - Free cash flow for Q3 was approximately $339 million, with $91 million returned to stockholders [14] Business Line Data and Key Metrics Changes - Endpoint Solutions grew 5%, driven by PCs, components, mobile, and services [10] - Advanced Solutions grew 12%, driven by Hyve, Hybrid Cloud, Software, and Services [10] - There was a 27.6% reduction from gross billings to net revenue, consistent with expectations [10] Market Data and Key Metrics Changes - The IT market is showing signs of recovery, with significant growth across geographic segments [8] - Europe and APJ are recovering faster than North America, which is currently flat [40] Company Strategy and Development Direction - The company focuses on four major business priorities: revenue growth, pricing and margin management, managing cost to gross profit percentage, and capital allocation [6][7] - The strategy includes geographical expansion, enhancing value propositions, and disciplined execution to meet or exceed returns [6][7] - Investments in technology and enhancing the service mix are critical for sustainable growth [44][46] Management's Comments on Operating Environment and Future Outlook - Management is optimistic about the IT market recovery, expecting continued growth in Q4 and fiscal 2025 [8][17] - The company anticipates generating approximately $1 billion in free cash flow for the fiscal year [17] - There is confidence in the recovery of IT spending, particularly in PCs and networking [40] Other Important Information - The company has a strong balance sheet with $854 million in cash and cash equivalents and a gross leverage ratio of 2.3x [15] - The Board of Directors approved a dividend of $0.40 per common share, payable on October 25, 2024 [14] Q&A Session Summary Question: Insights on capital return policy and cash flow generation - Management maintains a medium-term outlook of $1.5 billion in free cash flow, with expectations of increased working capital needs due to recovery [20][21] Question: Details on the Hyve business and its impact on gross margins - Hyve continues to show strength, but margin headwinds are expected due to investments and previous year benefits [26][28] Question: Growth drivers in Strategic Technologies - Growth in Strategic Technologies is driven by cloud, security, AI, and significant investments from hyperscalers [30] Question: Focus on growth versus margin management - The company aims for profitable growth, with expectations of improved gross margins as the North American market recovers [33][34] Question: Current state of the PC market and AI PCs - The PC market is back to growth, with expectations of acceleration due to new AI PC launches [36][58] Question: Impact of large customers on revenue - The North American market remains muted, with no significant revenue impact from large customers noted [61][62]

Core Insights - TD SYNNEX reported revenue of $14.68 billion for the quarter ended August 2024, reflecting a year-over-year increase of 5.2% and surpassing the Zacks Consensus Estimate by 4.00% [1] - Earnings per share (EPS) for the quarter was $2.86, up from $2.78 in the same quarter last year, exceeding the consensus EPS estimate of $2.80 by 2.14% [1] Revenue Performance by Region - Revenue from the Americas reached $9.09 billion, exceeding the average estimate of $8.91 billion, marking a year-over-year increase of 2.4% [3] - Revenue from Europe was reported at $4.59 billion, surpassing the estimated $4.32 billion, with an 8.6% increase compared to the previous year [3] - Revenue from the Asia-Pacific and Japan region was $1 billion, exceeding the average estimate of $875.38 million, representing a significant year-over-year growth of 17.6% [3] Stock Performance - Over the past month, TD SYNNEX shares have declined by 4.1%, while the Zacks S&P 500 composite has increased by 1.7% [4] - The stock currently holds a Zacks Rank 3 (Hold), indicating expected performance in line with the broader market in the near term [4]

Core Viewpoint - TD SYNNEX reported quarterly earnings of $2.86 per share, exceeding the Zacks Consensus Estimate of $2.80 per share, and showing an increase from $2.78 per share a year ago, indicating a positive earnings surprise of 2.14% [1] Financial Performance - The company achieved revenues of $14.68 billion for the quarter ended August 2024, surpassing the Zacks Consensus Estimate by 4%, and up from $13.96 billion in the same quarter last year [2] - Over the last four quarters, TD SYNNEX has exceeded consensus EPS estimates three times, but has only topped revenue estimates once [2] Stock Performance and Outlook - TD SYNNEX shares have increased approximately 9% since the beginning of the year, while the S&P 500 has gained 20%, indicating underperformance relative to the broader market [3] - The future performance of the stock will largely depend on management's commentary during the earnings call and the trends in earnings estimate revisions [3][4] Earnings Estimates - The current consensus EPS estimate for the upcoming quarter is $3.20, with expected revenues of $15.12 billion, and for the current fiscal year, the EPS estimate is $11.72 on revenues of $57.17 billion [7] Industry Context - The Electronics - Miscellaneous Products industry, to which TD SYNNEX belongs, is currently ranked in the bottom 41% of over 250 Zacks industries, suggesting potential challenges ahead [8]

Core Insights - TD SYNNEX Corporation is set to release its third-quarter earnings results on September 26, with analysts expecting earnings of $2.80 per share, an increase from $2.78 per share in the same period last year [2] - The company is projected to report revenue of $14.11 billion for the quarter [2] - TD SYNNEX announced an acquisition of IPsense Cloud Migration business in Brazil to enhance its cloud capabilities for resellers [2] Analyst Ratings - Barrington Research analyst Vincent Colicchio maintains an Outperform rating with a price target of $138 [2] - RBC Capital analyst Ashish Sabadra upgraded the stock from Sector Perform to Outperform, raising the price target from $135 to $140 [2] - UBS analyst David Vogt maintained a Buy rating and increased the price target from $145 to $150 [2] - JP Morgan analyst Joseph Cardoso kept a Neutral rating, lowering the price target from $126 to $123 [2] - Barclays analyst Tim Long maintained an Equal-Weight rating and raised the price target from $111 to $118 [2]

Core Viewpoint - TD SYNNEX is expected to report third-quarter fiscal 2024 results on September 26, with projected revenues and earnings reflecting slight year-over-year growth despite challenges in the IT spending environment [1][2]. Revenue Expectations - For the fiscal third quarter, TD SYNNEX anticipates revenues between $13.3 billion and $14.9 billion, with the Zacks Consensus Estimate at $14.12 billion, indicating a 1.1% increase from the previous year [1]. - The company has experienced fluctuations in revenue performance, with a noted impact from softening IT spending due to a weakening global economy [3]. Earnings Projections - The projected non-GAAP earnings per share for the fiscal third quarter is between $2.55 and $3.05, with a consensus estimate of $2.80, suggesting a year-over-year increase of approximately 0.7% from $2.78 [2]. - TD SYNNEX has surpassed the Zacks Consensus Estimate in three of the last four quarters, with an average surprise of 8.1% [2]. Market Factors - The company's performance may be affected by sluggish demand for Endpoint Solutions amid declining PC demand, although growth in Advanced Solutions and high-growth technologies is expected to partially offset this decline [4]. - The demand for cloud storage services is increasing due to the momentum in online and e-commerce services, which is benefiting SNX's data center and cloud deployment efforts [5]. Economic Environment - Elevated interest rates throughout the quarter may have negatively impacted the company's bottom line, although recent rate cuts could provide some relief [6]. Earnings Prediction Model - Current analysis indicates that the model does not predict a definitive earnings beat for TD SYNNEX, as it holds a Zacks Rank 3 and an Earnings ESP of 0.00% [7].

Core Viewpoint - Wall Street analysts expect TD SYNNEX (SNX) to report quarterly earnings of $2.80 per share, reflecting a year-over-year increase of 0.7%, with revenues projected at $14.12 billion, indicating a 1.1% increase compared to the previous year [1]. Earnings Estimates - The consensus EPS estimate for the quarter has remained unchanged over the past 30 days, indicating that analysts have not revised their initial projections during this period [2]. - Changes in earnings estimates are crucial for predicting investor reactions to the stock, as empirical studies show a strong correlation between earnings estimate revisions and short-term stock price performance [3]. Revenue Estimates - The consensus estimate for 'Revenue- Americas' is $8.91 billion, reflecting a year-over-year change of +0.4% [5]. - Analysts project 'Revenue- Europe' to be $4.32 billion, indicating a +2.2% change from the prior year [5]. - 'Revenue- Asia-Pacific and Japan' is forecasted to reach $875.38 million, showing a year-over-year change of +2.6% [5]. Stock Performance - TD SYNNEX shares have experienced a -3% return over the past month, contrasting with the Zacks S&P 500 composite's +2% change [5]. - The company holds a Zacks Rank 3 (Hold), suggesting it is expected to perform in line with the overall market in the near future [5].

Core Insights - Acronis has partnered with FC Bayern Munich Basketball and TD SYNNEX Germany to enhance the basketball team's IT infrastructure and capabilities [1][2][3] Company Overview - Acronis is a global leader in cybersecurity and data protection, focusing on delivering comprehensive cyber protection solutions [2][9] - TD SYNNEX is a leading global distributor and solutions aggregator for the IT ecosystem, serving over 150,000 customers in more than 100 countries [7][8] Partnership Details - The collaboration aims to merge top-tier technology with sports excellence, enhancing Bayern Munich Basketball's technological capabilities [2][3][4] - As part of the partnership, TD SYNNEX will leverage Acronis solutions to improve the basketball team's IT infrastructure, providing various benefits including invitations to high-profile events [3][4] FC Bayern Munich Basketball Achievements - FC Bayern Munich Basketball has won six German championships and five German Cup victories, with the latest championship secured in the 2023-2024 season [2][6] - The team has also contributed to the German national team's success, with three players being part of the World Cup-winning squad in 2023 and representing Germany in the Men's Olympic Basketball Tournament in 2024 [2][6] Future Developments - FC Bayern Basketball will play its EuroLeague games in the new SAP Garden starting in autumn 2024, which has a seating capacity of 11,500 [6]

Collaboration Extends Exclaimer's Reach to Meet Demand for Email Signature Management Solutions LONDON, Sept. 12, 2024 /PRNewswire/ -- Exclaimer, the leading email signature management platform, today announced a new partnership with TD SYNNEX, a leading global distributor and solutions aggregator for the IT ecosystem. This new collaboration widens the availability of Exclaimer's best-in-class email signature solution to managed service provider (MSP) partners in North America through TD SYNNEX's distributi ...

Core Viewpoint - TD Synnex Corporation is expected to make strategic investments in the global hybrid cloud market and artificial intelligence, which could enhance future net sales growth. The company is also implementing ambitious cost optimization efforts that may lead to future free cash flow (FCF) growth. Additionally, the recent approval of a $2.0 billion share repurchase program may attract significant attention from the investment community. The company appears undervalued based on recent growth metrics, with a fair valuation estimated at approximately $177 per share using a conservative discounted cash flow (DCF) model [1][11][15]. Company Overview - TD Synnex Corporation operates as a distributor and solutions aggregator in the information technology industry, with geographic diversification across North and South America, Europe, Asia-Pacific, and Japan. This diversification may reduce revenue volatility during global economic downturns compared to competitors focused solely on the U.S. market [2]. - Collaborations with major companies like Apple, Cisco, and HP Inc. contribute to the company's reputation in the IT industry, with revenue from these partnerships accounting for about 10% to 11% of total quarterly revenue [2]. Latest Quarter's Earnings - In the latest quarter, TD Synnex reported GAAP EPS of $1.66, missing expectations by $0.42, and total revenue of $13.95 billion, missing expectations by $150.26 million. Analysts project EPS growth of 10% in 2025 and 12% in 2026, with the company trading at 7x 2026 earnings [3][4]. Financial Performance - From 2014 to 2023, TD Synnex experienced significant revenue growth, increasing from $13 billion to approximately $56 billion. Net income rose from $180 million in 2014 to $642 million in the latest report, while EBITDA grew from about $443 million to approximately $1.6 billion in 2024 [6][7]. - The company's total equity increased from $1.6 billion in 2014 to about $7.9 billion in 2024, with the book value per share more than doubling to around $93 [8][9]. Cash Flow and Valuation - The company's FCF has shown an upward trend recently, with expectations for continued growth driven by strategic investments in hybrid cloud and AI technologies. The global hybrid cloud market is projected to grow at a CAGR of 21.2% from 2024 to 2032, reaching approximately $256.04 billion by 2032 [11]. - A three-year $1.0 billion share repurchase program and a new $2.0 billion program are expected to enhance stock demand and potentially lower the company's cost of capital [11]. Analyst Sentiment - Recent reports from analysts indicate a positive outlook for TD Synnex, with six out of twelve analysts recommending a strong buy and four recommending a buy. No analysts have issued sell or strong sell ratings [13]. The company is currently trading at about 7x TTM EBITDA, significantly lower than competitors trading at 11x to 12x [13].

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 _______________________________________________________________________ For the transition period from _________ to _________ Commission File Number: 001-31892 _______________________________________________________________________ o Table of Contents Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 42 Item 5. Other Information 43 Item 6. Exhibits 44 Signatures 46 2 ITEM 1. Financial Statements (Amounts may not add or ...