TD SYNNEX Corporation (NYSE:SNX) Fiscal Q4 Earnings Overview

• Earnings per share (EPS) of $2.30 missed the estimated $3.07.
• Revenue of approximately $15.84 billion, surpassing the estimated $14.78 billion.
• Gross profit for the quarter was $1.04 billion, with a slight decrease in gross margin.

TD SYNNEX Corporation (NYSE:SNX) is a prominent player in the technology distribution and services industry. The company provides a wide range of IT products and services, catering to various sectors. SNX competes with other major distributors like Ingram Micro and Tech Data. On January 10, 2025, SNX reported its earnings for the fiscal fourth quarter of 2024, revealing mixed results.

SNX reported earnings per share (EPS) of $2.30, which fell short of the estimated $3.07. Despite this, the company generated revenue of approximately $15.84 billion, surpassing the estimated $14.78 billion. This revenue figure represents a 10% increase from the $14.4 billion reported in the same quarter of the previous year, highlighting the company's growth in sales.

The earnings call on January 10, 2025, featured key company figures such as CEO Patrick Zammit and CFO Marshall Witt. Analysts from major financial institutions like Goldman Sachs and JPMorgan attended the call, indicating significant interest in SNX's performance. The call provided insights into the company's financial health and future prospects.

SNX's gross profit for the quarter was $1.04 billion, a 2.2% increase from the previous year's $1.02 billion. However, the gross margin decreased by 50 basis points, from 7.07% to 6.57%. This decline in gross margin suggests that while revenue increased, the cost of goods sold also rose, impacting profitability.

The company's financial ratios provide further insight into its valuation and financial health. SNX has a price-to-earnings (P/E) ratio of 16.37 and a price-to-sales ratio of 0.20, indicating a relatively low market valuation compared to its sales. The debt-to-equity ratio is low at 0.02, suggesting minimal reliance on debt, while the current ratio of 1.24 indicates good liquidity to cover short-term liabilities.