TD SYNNEX Reports Fiscal 2022 Second Quarter Results

FREMONT, Calif. & CLEARWATER, Fla.–(BUSINESS WIRE)–TD SYNNEX today announced financial results for the fiscal second quarter ended May 31, 2022.

“Our fiscal Q2 results demonstrate the excellent performance delivered by our team amidst another quarter of strong demand for our technology solutions,” said Rich Hume, CEO of TD SYNNEX. “We are making great strides as TD SYNNEX and seeing the fruits of our labor as we progress on our merger integration and strategic initiatives to grow across core and high-growth technologies.”

Fiscal 2022 Second Quarter Highlights

• Revenue was $15.3 billion in the fiscal second quarter of 2022, up 160.7% from the prior fiscal second quarter primarily due to the impact of the completion of the merger with Tech Data on September 1, 2021. On a sequential basis, revenue decreased 1.3% compared to the prior quarter.

• Operating income was $253 million, compared to $222 million in the prior quarter, and $148 million in the prior fiscal second quarter. Non-GAAP operating income was $398 million, compared to $432 million in the prior quarter, and $170 million in the prior fiscal second quarter. Operating margin was 1.7%, compared to 1.4% in the prior quarter, and 2.5% in the prior fiscal second quarter. Non-GAAP operating margin was 2.6%, compared to 2.8% in the prior quarter, and 2.9% in the prior fiscal second quarter.

• Cash provided by operations was approximately $1.0 billion for the quarter.

• Repurchased $29 million of our common stock in the quarter and $53 million year to date.

• The trailing fiscal four quarters Return on Invested Capital (“ROIC”) was 8.4% compared to 9.7% in the prior quarter, and 20.5% in the prior fiscal second quarter. The adjusted trailing fiscal four quarters ROIC was 12.8%, compared to 13.9% in the prior quarter and 21.3% in the prior fiscal second quarter.

The following statements are based on TD SYNNEX’ current expectations for the fiscal 2022 third 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.

Third Quarter Fiscal 2022 Outlook

• Revenue is expected to be in the range of $14.5 billion to $15.5 billion.

• Net income is expected to be in the range of $120 million to $158 million and on a non-GAAP basis, net income is expected to be in the range of $241 million to $279 million.

• Diluted earnings per share is expected to be in the range of $1.24 to $1.64 and on a non-GAAP basis, diluted earnings per share is expected to be in the range of $2.50 to $2.90, based on estimated outstanding diluted weighted average shares of 95.5 million.

Full Year Fiscal 2022 Outlook

• Diluted earnings per share is expected to be in the range of $5.45 to $5.95, and we are reaffirming on a non-GAAP basis, diluted earnings per share is expected to be in the range of $11.15 to $11.65, based on estimated outstanding diluted weighted average shares of 95.6 million. We are reaffirming our full year fiscal 2022 non-GAAP diluted earnings per share guidance despite an unfavorable impact of $0.14 due to the further devaluation of the Euro.