TD Synnex Corp (NYSE:SNX) stock fell 0.39% (As on June 26, 12:11:40 AM UTC-4, Source: Google Finance) after the company reported a disappointing fiscal second quarter, missing analyst expectations for both earnings per share (EPS) and revenue. Non-GAAP gross billings were $19.3 billion, compared to $18.7 billion in the prior fiscal second quarter. Gross profit was $974 million, compared to $963 million in the prior fiscal second quarter. Non-GAAP gross profit was $974 million, compared to $969 million in the prior fiscal second quarter. Gross margin and non-GAAP gross margin were both 7.0%, compared to 6.9% in the prior fiscal second quarter. The presentation of additional revenues on a net basis positively impacted our gross margin and non-GAAP gross margin by approximately 27 basis points. Operating income was $264 million, compared to $253 million in the prior fiscal second quarter. Non-GAAP operating income was $388 million, compared to $376 million in the prior fiscal second quarter. Operating margin was 1.9%, compared to 1.8% in the prior fiscal second quarter. Non-GAAP operating margin was 2.8%, compared to 2.7% in the prior fiscal second quarter. Cash used in operations of $115 million, and negative free cash flow of $153 million, as Hyve, which is part of the strategic technologies, experienced strong growth due to new business ramping.

SNX in the second quarter of FY 24 has reported the adjusted earnings per share of $2.73, missing the analysts’ estimates for the adjusted earnings per share of $2.82. The company had reported the adjusted revenue decline of 0.8 percent to $13.95 billion in the second quarter of FY 24, missing the analysts’ estimates for revenue of $14.1 billion. Americas revenue was $8.6 billion, compared to $8.7 billion in the prior fiscal second quarter, representing a decrease of 1.6% on both a GAAP basis and a constant currency basis.

Additionally, the company has declared a quarterly cash dividend of $0.40 per common share. The dividend is payable on July 26, 2024 to stockholders of record as of the close of business on July 12, 2024.

TD SYNNEX also provided guidance for the third quarter of fiscal 2024, projecting adjusted EPS in the range of $2.55 to $3.05, with the midpoint below the analyst consensus of $2.93. Revenue forecasts for the next quarter are set between $13.3 billion and $14.9 billion, which also falls short of the expected $14.51 billion.