TD Synnex Corp (NYSE:SNX), the IT distributor, stock fell 2.60% (As on March 28, 11:17:42 AM UTC-4, Source: Google Finance) after the company reported first quarter earnings and revenue that fell short of analyst expectations and provided weaker-than-expected guidance for the current quarter. Non-GAAP gross billings of $20.7 billion, an increase of 7.5% from the prior fiscal first quarter. Gross profit was $998 million, compared to $1,006 million in the prior fiscal first quarter. Gross margin was 6.9%, compared to 7.2% in the prior fiscal first quarter, primarily due to higher margins in the prior year in strategic technologies and product mix. Non-GAAP operating income was $399 million, compared to $425 million in the prior fiscal first quarter. Non-GAAP operating margin was 2.7%, compared to 3.0% in the prior fiscal first quarter. Cash used in operations of $748 million, compared to cash provided by operations of $385 million in the prior fiscal first quarter, and negative free cash flow of $790 million, compared to positive free cash flow of $344 million in the prior fiscal first quarter.
Moreover, Americas revenue was $8.4 billion, compared to $7.9 billion in the prior fiscal first quarter, representing an increase of 6.2%. Non-GAAP gross billings of Americas were $12.4 billion, compared to $11.5 billion in the prior fiscal first quarter, representing an increase of 8.2%. Europe revenue was $5.1 billion, an increase of 0.4% compared to the prior fiscal first quarter. Non-GAAP gross billings of Europe were $6.9 billion, compared to $6.6 billion in the prior fiscal first quarter, representing an increase of 4.3%. Asia-Pacific and Japan revenue was $1.0 billion, compared to $955 million in the prior fiscal first quarter, representing an increase of 5.2%.
SNX in the first quarter of FY25 has reported the adjusted earnings per share of $2.80, missing the analysts’ estimates for the adjusted earnings per share of $2.91. The company had reported the adjusted revenue growth of 4 percent to $14.53 billion in the first quarter of FY25, missing the analysts’ estimates for revenue of $14.79 billion.
Additionally, the company returned $138 million to shareholders through $101 million in share repurchases and $37 million in dividends during the quarter. TD SYNNEX also announced a 10% increase in its quarterly dividend to $0.44 per share.
TD SYNNEX’s outlook for the second quarter also disappointed investors. The company forecast adjusted EPS of $2.45-$2.95, below the $3.03 consensus estimate. It sees Q2 revenue of $13.9-14.7 billion, compared to analyst expectations of $14.72 billion.