TD SYNNEX (US:SNX) ZACKSยท2024-09-27 11:16Core Insights - TD SYNNEX Corporation (SNX) reported better-than-expected third-quarter fiscal 2024 results with non-GAAP earnings of $2.86 per share, exceeding the Zacks Consensus Estimate of $2.80 and reflecting a 2.9% increase from the previous year's earnings of $2.78 per share [1][3] - The company's quarterly revenues rose 5.2% year over year to $14.68 billion, surpassing the consensus mark of $14.12 billion, driven by growth in Advanced Solutions and Endpoint Solutions portfolios [2][3] - TD SYNNEX provided strong revenue guidance for the fourth quarter, with expected revenues between $14.9 billion and $15.7 billion, indicating robust year-over-year growth [3][8] Financial Performance - Non-GAAP gross profit declined 1.3% year over year to $961 million, with a gross margin contraction of 43 basis points to 6.54% [4] - Adjusted SG&A expenses decreased to $568.2 million from $576.9 million in the prior year, with SG&A as a percentage of revenues decreasing by 26 basis points to 3.87% [4] - Operating cash flow for the reported quarter was $386 million, with free cash flow at $339 million, and year-to-date figures of $656 million and $530 million respectively [5] Shareholder Returns - In the third quarter, TD SYNNEX returned $91 million to shareholders through stock repurchases of $57 million and dividends of $34 million [6] - The board approved a 14% increase in the quarterly dividend to 40 cents per share, payable on October 25 to shareholders of record as of October 11 [7] Future Outlook - The company projects non-GAAP net income for the fourth quarter in the range of $239 million to $282 million, with non-GAAP EPS expected between $2.80 and $3.30 [8]