TD Synnex Corp (NYSE:SNX) stock fell 4.77% (As on September 26, 11:29:09 AM UTC-4, Source: Google Finance) after the company posted mixed result for the third quarter of FY 23. Non-GAAP gross billings were $18.6 billion, compared to $20.0 billion in the prior fiscal third quarter. Non-GAAP gross profit was $974 million, compared to $942 million in the prior fiscal third quarter. Non-GAAP gross margin was 7.0%, compared to 6.1% in the prior fiscal third quarter. The increase in gross margin was driven primarily by a greater portion of our revenues coming from higher-margin high-growth technologies. Non-GAAP operating income was $397 million, compared to $398 million in the prior fiscal third quarter. Non-GAAP operating margin was 2.8%, compared to 2.6% in the prior fiscal third quarter. Cash provided by operations of $592 million, and free cash flow of $552 million, driven in part by a reduction in inventories as backlogs normalize, resulting in the cash conversion cycle improving by 1 day as compared to the fiscal second quarter.

SNX in the third quarter of FY 23 has reported the adjusted earnings per share of $2.78, beating the analysts’ estimates for the adjusted earnings per share of $2.47. The company had reported 9.1 percent decline in the adjusted revenue to $14 billion in the third quarter of FY 23, missing the analysts’ estimates for revenue of $14.11 billion.  The revenue change was driven primarily by a decline in our Endpoint Solutions portfolio as the industry continued to see post-pandemic declines in demand for PC ecosystem products. This was partially offset by growth in our Advanced Solutions portfolio. The shift in product mix resulted in a greater percent of our revenues being presented on a net basis, which negatively impacted the revenue compared to the prior fiscal third quarter by approximately 2%.

Moreover, Americas revenue was $8.9 billion, compared to $9.9 billion in the prior fiscal third quarter, representing a decrease of 10.3%. Europe revenue was $4.2 billion, compared to $4.7 billion in the prior fiscal third quarter, representing a decrease of 9.7%. Asia-Pacific and Japan revenue was $853 million, compared to $774 million in the prior fiscal third quarter, representing an increase of 10.3%.

The company anticipates its fourth-quarter revenue to range between $14.0 billion and $15.0 billion, which falls short of the estimated revenue of $15.21 billion. Moreover, TD SYNNEX projects its adjusted earnings per share (EPS) to be in the range of $2.40 to $2.90, lower than the estimated EPS of $2.95.