TD SYNNEX: Revenue Surge, EPS Miss; What's Next?

Alright, tech investors, let's dive into TD SYNNEX's (NYSE: SNX) full-year 2024 earnings report. The company's revenue beat expectations, but earnings per share (EPS) fell short. So, what's the deal? Let's break it down.

First off, the good news: TD SYNNEX's revenue for the fiscal fourth quarter came in at $15.8 billion, surpassing the company's outlook of $14.9 – $15.7 billion. That's a solid 10% increase year-over-year. Non-GAAP gross billings also came in above the midpoint of the outlook, at $21.2 billion. So, what's not to love?

Well, EPS missed the mark. Non-GAAP diluted EPS came in at $3.09, below the midpoint of the outlook. Ouch! But let's not forget that EPS can be a bit of a tricky metric, especially for tech companies. Sometimes, it's more about the growth story than the bottom line.



Now, let's talk about what's driving TD SYNNEX's growth. The company's end-to-end portfolio and global reach are enabling it to capture a wide range of technology spend. Both the Advanced Solutions and Endpoint Solutions portfolios contributed to the revenue increase. Plus, the company returned 72% of its free cash flow to shareholders in fiscal year 2024, indicating strong financial performance.

But what about the future? TD SYNNEX's CEO, Patrick Zammit, believes the IT spending environment will continue to improve. If that's the case, the company's growth story could remain intact. However, there are some risks to consider, such as competition and economic downturns.

So, what's an investor to do? Well, if you're bullish on the tech sector and believe in TD SYNNEX's growth story, this earnings report might not be a deal-breaker. However, if you're looking for a more conservative play, you might want to wait for more clarity on the EPS front.

In conclusion, TD SYNNEX's revenue surge is certainly something to celebrate. But the EPS miss is a reminder that even the best growth stories can have their bumps in the road. As always, it's essential to do your own research and consider your risk tolerance before making any investment decisions. Happy investing!