Financial Data and Key Metrics Changes - Gross billings increased by 12% year over year, reaching $21.6 billion, with a 11% growth in constant currency [12] - Net revenue rose by 7% year over year to $14.9 billion, exceeding guidance [13] - Non-GAAP diluted EPS was $2.99, above the upper end of guidance [16] - Free cash flow generation for the quarter was approximately $543 million [17] Business Line Data and Key Metrics Changes - Endpoint Solutions portfolio gross billings grew by 13% year over year, driven by the ongoing PC refresh cycle [13] - Advanced Solutions portfolio gross billings increased by 12% year over year, with a 10% growth when excluding Hive [13] - Software billings grew by 20%, driven by cloud, cybersecurity, and infrastructure software [6] Market Data and Key Metrics Changes - All regions and major technologies experienced growth during the quarter, with strong demand from SMB, MSPs, and Public Sector, all growing in double digits [6] - Europe showed strong growth at 17% year over year, while North America also enjoyed solid growth [90] Company Strategy and Development Direction - The company shared five strategic imperatives aimed at delivering above-market growth, including unifying reach, targeting new customers, and expanding distribution markets [7] - The focus on digital capabilities is intended to help new customers scale and improve operational efficiencies [9] - The company aims to generate profitable growth and free cash flow while being a valued partner to vendors and customers globally [10] Management's Comments on Operating Environment and Future Outlook - Management acknowledged a volatile environment due to global trade developments but expressed confidence in the company's strong financial position [18] - For Q3, the company expects non-GAAP gross billings in the range of $21 billion to $22 billion, representing approximately 6% growth at the midpoint [18] - Management remains cautiously optimistic about demand, particularly in the public sector, despite macroeconomic uncertainties [32] Other Important Information - The company returned $186 million to shareholders in Q2, including $149 million in share repurchases and $37 million in dividends [17] - The Board of Directors approved a cash dividend of $0.44 per common share, payable on July 25, 2025 [18] Q&A Session Summary Question: Can you provide more details on the demand pull forward mentioned? - Management noted a pull forward in demand, particularly in PCs, estimating a benefit of $100 million to $200 million in sales [23][24] Question: Why is Q3 guidance similar to last year despite the pull forward? - Management indicated that while there was a pull forward, they expect demand to soften in the second half of the year, leading to cautious guidance [30] Question: Are you seeing any weakness in any region or product line? - Management stated that current demand is in line with guidance, but they remain cautious due to potential impacts from tariffs and geopolitical issues [60] Question: What is the current status of the PC refresh cycle? - Management believes the company is in the middle of the PC refresh cycle, which began one to two quarters ago [79] Question: What is driving the sequential margin improvement in the Endpoint Solutions business? - Management attributed margin improvement to increased demand and a stronger pricing environment during the refresh cycle [83]

Investor Presentation June 2025 Safe harbor statement Statements in this presentation regarding TD SYNNEX that are not historical facts are "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Such forward- looking statements are inherently uncertain, and stockholders and other potential investors must recognize that actual results may differ materially from TD SYNNEX expectations as a result of a variety of fact ...

Financial Performance - Revenue for Q2 FY25 was $14.9 billion, a 7.2% increase year over year, exceeding the high end of the outlook[5] - Non-GAAP gross billings reached $21.6 billion, up 12.1% year over year, also above the high end of the outlook[5] - Diluted EPS was $2.21, a 33.1% increase from $1.66 in Q2 FY24, while non-GAAP diluted EPS was $2.99, up 9.5% from $2.73[5] - Operating income increased to $328 million, a 24.3% rise from $263.9 million in Q2 FY24, with a non-GAAP operating income of $414 million, up 6.7%[5] - Cash provided by operations was $573 million, compared to cash used in operations of $115 million in the prior year, with free cash flow of $543 million[5] - Net income for the three months ended May 31, 2025, was $184,921, a 28.8% increase compared to $143,605 in the prior year[28] - Basic earnings per share increased to $2.22 from $1.67, reflecting a 32.9% year-over-year growth[28] - Operating income for the three months ended May 31, 2025, was $328,139, representing a 24.4% increase from $263,948 in the same period of 2024[40] - Non-GAAP operating income for the six months ended May 31, 2025, was $54,020, down from $58,500 in the same period of 2024, reflecting a decrease of 7.5%[42] - Adjusted EBITDA for the six months ended May 31, 2025, was $871,440, slightly up from $868,394 in the same period of 2024[42] Cash Flow and Dividends - The company returned $186 million to stockholders through share repurchases and dividends, compared to $288 million in the previous year[5] - A quarterly cash dividend of $0.44 per common share was announced, representing a 10% increase year over year[10] - The company reported a net cash provided by operating activities of $573.2 million for the three months ended May 31, 2025, compared to a net cash used of $114.7 million in the same period last year[30] - Free cash flow for the three months ended May 31, 2025, was $542,939, a significant recovery from a negative $152,530 in the same period of 2024[46] Regional Performance - The Americas region reported revenue of $9.0 billion, a 5.3% increase, while Europe saw a 10.5% increase to $4.9 billion[8] - Operating income for the Americas segment rose to $252.6 million, a 20.7% increase compared to $209.3 million in Q2 FY24[32] - Revenue in constant currency for the Americas segment was $9.05 billion, reflecting a 5.7% increase from the previous year[34] - Operating income for the Europe segment surged by 46.4% to $50.3 million compared to $34.4 million in Q2 FY24[32] Financial Position - Total current assets as of May 31, 2025, were $21,492,779, slightly up from $21,324,696 as of November 30, 2024[26] - Total liabilities decreased marginally to $22,166,815 from $22,239,045, indicating improved financial stability[26] - The company’s cash and cash equivalents decreased to $767,099 from $1,059,378, highlighting a reduction in liquidity[26] - Total cash and cash equivalents at the end of the period were $767.1 million, down from $1.17 billion at the end of the same period last year[30] Guidance and Outlook - For Q3 FY25, the company expects revenue between $14.7 billion and $15.5 billion, with non-GAAP gross billings projected between $21.0 billion and $22.0 billion[9] - The forecast for non-GAAP net income for the three months ending August 31, 2025, is between $227,000 and $268,000[46] - Non-GAAP gross billings for the three months ending August 31, 2025, are projected to be between $21.0 billion and $22.0 billion[46] - Forward-looking statements indicate that the company expects to navigate various risks and uncertainties, including economic conditions and competitive pressures, in the upcoming quarters[21] Operational Metrics - Management emphasizes the use of non-GAAP financial measures to provide investors with a clearer understanding of operational results and trends[20] - The company's ROIC for the twelve months ended May 31, 2025, improved to 8.8%, up from 7.7% in the previous year[48] - The cash conversion cycle remained stable at 23 days for both the three months ended May 31, 2025, and 2024[50] Cost and Expenses - Adjusted selling, general and administrative expenses as a percentage of revenue was 4.80% for the three months ended May 31, 2025, slightly down from 4.82% in the same period of 2024[38] - Selling, general and administrative expenses as a percentage of gross profit was 68.6% for the three months ended May 31, 2025, compared to 69.0% in the same period of 2024[38] - The company incurred costs related to sales of third-party supplier service contracts totaling $6,701,215 for the three months ended May 31, 2025, compared to $5,356,701 in the same period of 2024[38] Currency Impact - The company experienced a negative impact of $114.6 million from changes in foreign currencies on consolidated revenue for the three months ended May 31, 2025[34] - The impact of changes in foreign currencies on non-GAAP gross billings was a decrease of $153,712 for the three months ended May 31, 2025[36]

Wall Street analysts expect TD SYNNEX (SNX) to post quarterly earnings of $2.69 per share in its upcoming report, which indicates a year-over-year decline of 1.5%. Revenues are expected to be $14.32 billion, up 2.7% from the year-ago quarter.Over the last 30 days, there has been an upward revision of 1% in the consensus EPS estimate for the quarter, leading to its current level. This signifies the covering analysts' collective reconsideration of their initial forecasts over the course of this timeframe.Ahea ...

Core Viewpoint - The market anticipates a year-over-year decline in earnings for TD SYNNEX despite an increase in revenues when it reports results for the quarter ended May 2025 [1] Earnings Expectations - The consensus EPS estimate for TD SYNNEX is $2.69 per share, reflecting a -1.5% change year-over-year [3] - Expected revenues are projected at $14.32 billion, which is a 2.7% increase from the same quarter last year [3] Estimate Revisions - The consensus EPS estimate has been revised 1% higher in the last 30 days, indicating a reassessment by analysts [4] - The Most Accurate Estimate for TD SYNNEX is lower than the Zacks Consensus Estimate, resulting in an Earnings ESP of -4.28%, suggesting a bearish outlook from analysts [12] Earnings Surprise Prediction - A positive Earnings ESP is a strong predictor of an earnings beat, especially when combined with a Zacks Rank of 1, 2, or 3 [10] - Stocks with a positive Earnings ESP and a solid Zacks Rank have historically produced a positive surprise nearly 70% of the time [10] Historical Performance - In the last reported quarter, TD SYNNEX was expected to post earnings of $2.87 per share but delivered $2.80, resulting in a surprise of -2.44% [13] - Over the past four quarters, the company has beaten consensus EPS estimates two times [14] Conclusion - TD SYNNEX does not appear to be a compelling candidate for an earnings beat based on current estimates and revisions [17] - Investors should consider other factors beyond earnings results when making investment decisions regarding TD SYNNEX [15][17]

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]

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] Business Line Data and Key Metrics Changes - Advanced Solutions grew by 7% year over year, driven by demand for integrated IT solutions [7] - Endpoint solutions grew by 8% year over year, with growth across PCs and mobile [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] - 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 [12][20] - The company aims to adapt to changing economic conditions while maintaining a strong market position [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 outlook for Q2 includes expected gross billings in the range of $19.7 billion to $20.7 billion, with a focus on maintaining mid-single-digit growth [30][32] - Management remains optimistic about the demand environment and the company's ability to participate and grow [42] Other Important Information - The company returned $138 million to stockholders in Q1, including $101 million in share repurchases [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 noted that Hive experienced double-digit growth but faced temporary demand pauses and component shortages, which are expected to normalize in Q2 [35][39] 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 average price increases from vendors and their impact? - Management acknowledged some limited price increases from vendors but emphasized that they are manageable and will be passed through to the channel [53][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’s geographic exposure compare to smaller players? - Management highlighted that the company has a strong market position in North America and Europe, with opportunities for growth in Latin America and APJ [99][100]