FREMONT, Calif. & CLEARWATER, Fla. - TD SYNNEX (NYSE: NYSE:SNX) reported a disappointing fiscal second quarter, missing analyst expectations for both earnings per share (EPS) and revenue.
The global IT distributor posted adjusted EPS of $2.73, falling short of the consensus estimate of $2.82. Revenue also came in below expectations at $13.95 billion, compared to the anticipated $14.1 billion. Following the earnings release, the company's stock price dropped by 7.9%.
The company's second-quarter revenue marked a slight decrease of 0.8% compared to the same quarter last year, which CEO Rich Hume attributed to a greater percentage of revenue being presented on a net basis. Despite the revenue dip, non-GAAP gross billings saw a 3.1% increase year-over-year (YoY), and non-GAAP gross margin improved slightly by 9 basis points YoY.
TD SYNNEX also provided guidance for the third quarter of fiscal 2024, projecting adjusted EPS in the range of $2.55 to $3.05, with the midpoint below the analyst consensus of $2.93. Revenue forecasts for the next quarter are set between $13.3 billion and $14.9 billion, which also falls short of the expected $14.51 billion.
Hume expressed confidence in the company's growth prospects for the second half of the fiscal year, citing an improving IT spending environment and a return to YoY gross billings growth. The company's strategic focus on core business across Endpoint and Advanced Solutions, along with mid-teens growth in Strategic Technologies, is expected to drive future performance.
Despite the current quarter's setbacks, TD SYNNEX remains committed to shareholder returns, having increased its quarterly cash dividend by 14% from the prior fiscal second quarter. The company also reported returning $288 million to shareholders through share repurchases and dividends, representing a significant increase from the previous year.
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