TD SYNNEX Corp (SNX) is riding high on Wall Street after delivering strong third-quarter results that beat analyst expectations. The Fremont, California-based technology distributor reported adjusted earnings per share (EPS) of $2.86, exceeding the consensus estimate of $2.80. Revenue for the quarter came in at $14.69 billion, representing a 5.2% year-over-year increase and outperforming analysts’ projections of $14.11 billion.
This growth was fueled by strong performance in both the Advanced Solutions and Endpoint Solutions portfolios. On a constant currency basis, revenue climbed 5.6% year-over-year. Adjusted gross billings for the quarter reached $20.3 billion, compared to $18.58 billion in the previous year’s third quarter.
While adjusted gross profit dipped slightly to $961.05 million from $973.7 million in the prior year’s third quarter, adjusted operating income remained steady at $393 million, aligning with the $397 million recorded in the same period last year. TD SYNNEX returned $91 million to shareholders through share repurchases and dividends, showcasing its commitment to shareholder value.
In a further display of confidence, TD SYNNEX’s Board of Directors declared a quarterly cash dividend of $0.40 per common share, payable on October 25 to stockholders of record as of October 11.
Looking ahead, TD SYNNEX is optimistic about the IT market recovery, anticipating fourth-quarter adjusted EPS between $2.80 and $3.30, compared to the estimated $3.22. The company projects revenue of $14.9 billion to $15.7 billion, exceeding the estimated $15.15 billion.
“Q3 was a strong quarter, reinforcing our optimism regarding IT market recovery. In particular, we saw significant growth across geographic segments and in both our Endpoint and Advanced solutions businesses. Additionally, gross billings in Q3 grew 9%, coming in above the high end of our range,” stated Patrick Zammit, CEO of TD SYNNEX.
Investors interested in gaining exposure to TD SYNNEX can consider ETFs like the Invesco S&P MidCap 400 Revenue ETF (RWK) and the Invesco S&P Midcap 400 Pure Value ETF (RFV).
Following the positive earnings announcement, SNX shares are experiencing a surge, rising 2.17% to $119.84 at the last check on Thursday.
