US stock futures flounder amid tech weakness, Fed caution
FREMONT, Calif. -On Thursday, TD SYNNEX Corp. (NYSE: NYSE:SNX), the IT distributor, reported first quarter earnings and revenue that fell short of analyst expectations and provided weaker-than-expected guidance for the current quarter.
The company saw its shares tumble -9.93% in premarket trading following the release.
The company posted adjusted earnings per share of $2.80 for the fiscal first quarter ended February 28, missing the consensus estimate of $2.91. Revenue came in at $14.53 billion, below the $14.79 billion analysts were expecting.
TD SYNNEX’s outlook for the second quarter also disappointed investors. The company forecast adjusted EPS of $2.45-$2.95, below the $3.03 consensus estimate. It sees Q2 revenue of $13.9-14.7 billion, compared to analyst expectations of $14.72 billion.
"The strength of our business model allowed us to grow ahead of the market in Q1," said CEO Patrick Zammit. "Our end-to-end strategy, global reach and specialist go to market approach continues to empower us to capture a wide range of IT spend."
Despite the CEO’s optimistic tone, investors focused on the earnings miss and soft guidance. The stock was down =9.93% following the results.
TD SYNNEX said non-GAAP gross billings, which adjusts for certain costs, grew 7.5% YoY to $20.7 billion in Q1. On a constant currency basis, non-GAAP gross billings increased 9.5%.
The company returned $138 million to shareholders through $101 million in share repurchases and $37 million in dividends during the quarter. TD SYNNEX also announced a 10% increase in its quarterly dividend to $0.44 per share.
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