TD SYNNEX Corp. (NYSE:SNX) reported stronger-than-expected results for the second quarter on Tuesday, yet its shares fell 2% in response.
The IT distributor posted adjusted earnings per share (EPS) of $2.99, beating analyst expectations of $2.71. Revenue rose 7.2% year-over-year to $14.95 billion, surpassing the forecasted $14.3 billion.
“Our Q2 results demonstrate the continued strength of the IT Distribution and Hyperscaler markets, meanwhile, our strategy and the execution of our team are enabling us to grow ahead of market,” said CEO Patrick Zammit.
For the third quarter, TD SYNNEX projects adjusted EPS between $2.75 and $3.25, slightly below the consensus estimate of $2.96. Revenue guidance ranges from $14.7 billion to $15.5 billion, compared to analyst expectations of $15.016 billion.
In Q2, non-GAAP gross billings increased 12.1% year-over-year to $21.6 billion, while operating margin remained steady at 2.8%.
By region, revenue in the Americas rose 5.3% to $9.0 billion; Europe increased 10.5% to $4.9 billion; and Asia-Pacific and Japan climbed 8.7% to $1.0 billion.
TD SYNNEX ended the quarter with $767 million in cash and cash equivalents. During Q2, the company repurchased $149 million of its stock and paid $37 million in dividends.