TD SYNNEX has announced financial results for the fiscal third quarter ended August 31, 2022. 

 “The strength of our combined organization was evident in fiscal Q3, as our teams once again demonstrated solid execution, with revenue growth and increased profitability in an uncertain macroeconomic environment,” said Rich Hume, CEO of TD SYNNEX. “During our first year together as TD SYNNEX, we made significant progress on our merger integration, exceeding our targets for non-GAAP EPS accretion and cost synergy attainment.”

Fiscal 2022 Third Quarter Highlights

  • Revenue was $15.4 billion in the fiscal third quarter of 2022, up 194.9% from the prior fiscal third quarter primarily due to the impact of the completion of the merger with Tech Data on September 1, 2021. On a sequential basis, revenue increased approximately 1% compared to the prior quarter.
  • Operating income was $242 million, compared to $253 million in the prior quarter and $148 million in the prior fiscal third quarter. Non-GAAP operating income was $398 million in both the current and prior quarter, compared to $168 million in the prior fiscal third quarter. Operating margin was 1.6%, compared to 1.7% in the prior quarter, and 2.9% in the prior fiscal third quarter. Non-GAAP operating margin was 2.6% in both the current and prior quarter, compared to 3.2% in the prior fiscal third quarter.
  • Cash used in operations was approximately $67 million for the quarter primarily due to working capital investments to support growth in the business.
  • Repurchased $30 million of our common stock in the quarter and $83 million year to date.
  • The trailing fiscal four quarters Return on Invested Capital (“ROIC”) was 7.6% compared to 8.4% in the prior quarter and 21.0% in the prior fiscal third quarter. The adjusted trailing fiscal four quarters ROIC was 12.0%, compared to 12.8% in the prior quarter and 21.8% in the prior fiscal third quarter.

The following statements are based on TD SYNNEX’ current expectations for the fiscal 2022 fourth quarter. Non-GAAP financial measures exclude the impact of acquisition, integration and restructuring costs, amortization of intangible assets, share-based compensation, purchase accounting adjustments, and the related tax effects thereon. These statements are forward-looking and actual results may differ materially.

Fourth Quarter Fiscal 2022 Outlook

  • Revenue is expected to be in the range of $15.2 billion to $16.2 billion.
  • Net income is expected to be in the range of $138 million to $177 million and on a non-GAAP basis, net income is expected to be in the range of $259 million to $298 million.
  • Diluted earnings per share is expected to be in the range of $1.44 to $1.84 and on a non-GAAP basis, diluted earnings per share is expected to be in the range of $2.70 to $3.10, based on estimated outstanding diluted weighted average shares of 95.2 million.

Dividend

TD SYNNEX announced that its Board of Directors declared a quarterly cash dividend of $0.30 per common share. The dividend is payable on October 28, 2022 to stockholders of record as of the close of business on October 14, 2022.

Source: TD Synnex