TD Synnex Corp (NYSE:SNX) stock rose 1.17% (As on September 27, 11:28:52 AM UTC-4, Source: Google Finance) after the company posted higher than expected results for the third quarter of FY 24. On a constant currency basis, revenue increased by 5.6% compared to the prior fiscal third quarter. The increases were driven by growth in both our Advanced Solutions and Endpoint Solutions portfolios. A greater percentage of our revenue was presented on a net basis, which negatively impacted the revenue compared to the prior fiscal third quarter by approximately 4%. Non-GAAP gross billings were $20.3 billion, compared to $18.6 billion in the prior fiscal third quarter. Gross profit was $961 million, compared to $971 million in the prior fiscal third quarter. Gross margin and non-GAAP gross margin were both 6.5%, compared to 7.0% in the prior fiscal third quarter, primarily due to higher margins in the prior year in strategic technologies and product mix. Non-GAAP operating income was $393 million, compared to $397 million in the prior fiscal third quarter. Non-GAAP operating margin was 2.7%, compared to 2.8% in the prior fiscal third quarter.

SNX in the third quarter of FY 24 has reported the adjusted earnings per share of $2.86, beating the analysts’ estimates for the adjusted earnings per share of $2.80. The company had reported the adjusted revenue growth of 5.2 percent to $14.7 billion in the third quarter of FY 24, beating the analysts’ estimates for revenue of $14.14 billion. Americas revenue was $9.1 billion, compared to $8.9 billion in the prior fiscal third quarter, representing an increase of 2.4%. Europe revenue was $4.6 billion, compared to $4.2 billion in the prior fiscal third quarter, representing an increase of 8.6%. Asia-Pacific and Japan revenue was $1.0 billion, compared to $0.9 billion in the prior fiscal third quarter, representing an increase of 17.6%.

Additionally, the company has declared a quarterly cash dividend of $0.40 per common share. The dividend is payable on October 25, 2024 to stockholders of record as of the close of business on October 11, 2024.

Looking forward, the company expects gross billings for Q4 to be between $20.5 billion and $21.5 billion. TD Synnex sees Q4 2024 EPS of $2.80-$3.30 versus the analyst consensus of $3.22. TD Synnex sees Q4 2024 revenue of $14.90B-$15.70B versus the analyst consensus of $15.16B.  The company aims to generate approximately $1 billion in free cash flow for the fiscal year and continues to prioritize returning excess cash to shareholders.