TD Synnex Corp (NYSE:SNX) stock rose 1.10% (As on Jan 12, 11:25:54 AM UTC-4, Source: Google Finance) after the company posted better than expected results for the fourth quarter of FY 21. The operating income decreased by 7.5% Y/Y to $185.36 million, and the margin contracted by 208 bps to 1.2%. Adjusted operating margin declined by 100 bps to 2.6%. Adjusted EBITDA was $435.4 million (+89.2% Y/Y), and margin contracted by 100 bps to 2.8%. The trailing fiscal four quarters ROIC was 13.1% compared to 14.6% in the prior year, and the adjusted ROIC was 16%. TD Synnex generated cash from operating activities for the fiscal year of $809.79 million, compared to $1.38 billion a year ago. The company generated free cash flow of $754.89 million. The company held cash and equivalents of $993.97 million as of November 30, 2021.

Moreover, the advanced solutions products and service business saw a continued improvement in the quarter and grew year-over-year, assuming the merger had occurred in the prior year. Endpoint solutions, though slightly down year-over-year, performed well and in line with the expectations despite the challenging industry supply conditions and a tough prior year comparison. All the three geographic regions performed well. In the Americas, demand was solid. And the enterprise space did well as corporations prioritize infrastructure and security projects. In the government segment, there was a bit of a slowdown in spending, which is not unusual in the first year of a new administration.

SNX in the fourth quarter of FY 21 has reported the adjusted earnings per share of $2.86, beating the analysts’ estimates for the adjusted earnings per share of $2.67. The company had reported the adjusted revenue growth of 155.1 percent to $15.61 billion in the fourth quarter of FY 21, beating the analysts’ estimates for revenue of $14.25 billion. The increased revenue reflects the completion of the merger with Tech Data on September 1, 2021.

Additionally, TD Synnex increased its quarterly dividend by 50% compared to the prior quarter to $0.30/share, payable on January 28, 2022, to stockholders of record on January 21, 2022.

For the first quarter of 2022, TD Synnex expects revenue to be in the range of $14.75 billion – $15.75 billion, above the consensus of $14.57 billion. It sees Q1 2022 non-GAAP EPS of $2.55 – $2.85, above the consensus of $2.44.

For fiscal 2022, TD Synnex expects non-GAAP EPS to be in the range of $10.80 – $11.20 versus the consensus of $10.40.