TD SYNNEX Corporation (NYSE: SNX) is a global distributor and solution aggregator for the IT ecosystem, serving over 150,000 customers in more than 100 countries. For the fourth quarter of fiscal year 2024, TD SYNNEX reported a revenue of $15.8 billion, a 10% increase year-over-year, surpassing its guidance of $14.9 to $15.7 billion. The company’s gross billings for the same quarter reached $21.2 billion, indicating a 7.4% rise compared to $19.7 billion reported in the fourth quarter of the previous year.

The quarterly adjusted net income was reported at $263 million, while diluted earnings per share (EPS) stood at $3.09, a slight decrease from $3.13 in the year-ago quarter. In terms of profitability, gross profit for Q4 was $1 billion, reflecting a slight year-over-year increase due to favorable operational efficiencies, although gross margin declined by 50 basis points to 6.57%. Operating income increased by 13.2% to $325 million, with the non-GAAP operating income reaching $422 million, marking a 1.2% drop compared to last year.

During fiscal year 2024, TD SYNNEX demonstrated solid operational performance with free cash flow totaling $1 billion, aligned with its annual target. The company returned approximately 72% of its free cash flow to shareholders through share repurchases and dividends, amounting to $750 million for the year. For Q4 alone, free cash flow was $513 million, a substantial rise from $168 million in the prior year’s fourth quarter. Cash provided by operations reached $562 million for the fourth quarter, up from $211 million year-over-year.

Looking forward, for the first fiscal quarter of 2025, the company anticipates gross billings to fall between $19.7 billion and $20.7 billion, with net revenue expected in the range of $14.4 billion to $15.2 billion. The average diluted earnings per share (EPS) is projected to be between $2.65 and $3.15.

The geographic breakdown shows promising trends, particularly in the Asia-Pacific region, where revenue soared 31.7% to $1.1 billion. The Americas saw a revenue increase of 10.6% to $9.2 billion, while Europe experienced a modest growth of 5.5% with a revenue of $5.5 billion.

As of the end of Q4 FY24, TD SYNNEX maintained a gross leverage ratio of 2.2x and a net leverage ratio of 1.6x. Cash and cash equivalents amounted to $1.06 billion, while indebtedness stood at $3.9 billion. The company announced a 10% dividend increase, bringing the quarterly dividend to $0.44 per share, payable on January 31, 2025, with a record date of January 24, 2025.