TD SYNNEX Stock Soars 10% on Q4 Earnings Beat & Strong Revenue Growth

Core Viewpoint - TD SYNNEX CORP (SNX) reported better-than-expected fourth-quarter fiscal 2024 results, with shares rising 9.8% following the announcement. Non-GAAP earnings per share (EPS) were $3.09, surpassing estimates and guidance, although there was a year-over-year decline in earnings due to increased costs and expenses [1][9]. Financial Performance - Fourth-quarter revenues increased by 10% year-over-year to $15.84 billion, exceeding both the Zacks Consensus Estimate of $15.29 billion and management's guidance of $14.9-$15.7 billion [3]. - Revenues from Endpoint solutions reached $8.1 billion, up 5% year-over-year, while Advanced solutions revenues were $7.8 billion, up 16% year-over-year [4]. - Non-GAAP gross profit rose 2.2% year-over-year to $1.04 billion, but gross margin contracted by 50 basis points to 6.57% [4]. - Non-GAAP operating income for the fourth quarter decreased by 1.2% to $421.5 million, with a non-GAAP operating margin of 2.66%, down 30 basis points year-over-year [5]. Cash Flow and Shareholder Returns - The company generated operating cash flow of $562 million and free cash flow of $513 million in the fourth quarter. For fiscal 2024, operating cash flow was $1.2 billion and free cash flow was $1 billion [7]. - In the fourth quarter, SNX returned $136 million to shareholders through $102 million in share repurchases and $34 million in dividends. For fiscal 2024, share buybacks totaled $612 million, with dividends amounting to $138 million [7]. Fiscal Year Overview - For fiscal 2024, total revenues were $58.45 billion, a 1.6% increase from $57.56 billion in fiscal 2023. Non-GAAP gross billings were $80.1 billion, compared to $77.2 billion in the prior year [8]. - Non-GAAP operating income for fiscal 2024 was down 0.9% to $1.627 billion, with a non-GAAP operating margin of 2.78%, down 7 basis points from the previous year. Non-GAAP EPS increased by 3.7% year-over-year to $11.68 [9]. Guidance - For the first quarter of fiscal 2025, SNX expects revenues between $14.4 billion and $15.2 billion, with non-GAAP EPS projected in the range of $2.65-$3.15. The Zacks Consensus Estimate for revenues is $14.8 billion, and for earnings, it is $2.90 per share [10][11].