TD SYNNEX Corp (NYSE:SNX) shares are trading higher on Thursday after the company reported its third-quarter results.
The Fremont, California-based company reported an adjusted EPS of $2.86, beating the street view of $2.80.
Quarterly revenue of $14.69 billion, up 5.2% Y/Y, exceeded the analyst view of $14.11 billion.
On a constant currency basis, revenue increased 5.6% Y/Y, aided by growth in both the Advanced Solutions and Endpoint Solutions portfolios.
Adjusted gross billings were $20.3 billion in the quarter under review, compared to $18.58 billion in the prior fiscal third quarter.
The adjusted gross profit was $961.05 million, compared to $973.7 million in the prior fiscal third quarter. The adjusted gross margin was 6.54%, compared to 6.97% in the last quarter.
Adjusted operating income stood at $393 million vs. $397 million a year ago quarter, with a margin of 2.7% vs. 2.8% in the same period last year.
TD SYNNEX returned $91 million to shareholders through share repurchases and dividends.
Dividend: TD SYNNEX disclosed that its Board of Directors had declared a quarterly cash dividend of $0.40 per common share, payable on October 25 to stockholders of record as of October 11.
Outlook: TD SYNNEX expects fourth-quarter adjusted EPS of $2.80 – $3.30, compared to the estimated $3.22.
The company projects revenue of $14.9 billion to $15.7 billion, vs. the estimated $15.15 billion.
“Q3 was a strong quarter, reinforcing our optimism regarding IT market recovery. In particular, we saw significant growth across geographic segments and in both our Endpoint and Advanced solutions businesses. Additionally, gross billings in Q3 grew 9%, coming in above the high end of our range,” said Patrick Zammit, CEO of TD SYNNEX.
Investors can gain exposure to the stock via Invesco Exchange-Traded Fund Trust II Invesco S&P MidCap 400 Revenue ETF (NYSE:RWK) and Invesco S&P Midcap 400 Pure Value ETF (NYSE:RFV).
Price Action: SNX shares are up 2.17% at $119.84 at the last check Thursday.
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This article TD SYNNEX’s Q3: Earnings Beat, Revenue Surge, And IT Market Recovery On The Horizon originally appeared on Benzinga.com
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