TD SYNNEX down in Q3 owing to weak PC demand

The distie powerhouse was partially rescued by growth in its advanced solutions

A diluted performance in its endpoint solutions business as a result of post-pandemic declines in the PC market leaves TD SYNNEX with a revenue drop in its fiscal third quarter 2023 results.

Revenues fell 9.1 per cent to $14bn, compared to $15.4bn in the prior fiscal Q3.

The figure still came in at the midpoint of the previously provided outlook of $13.5bn - $14.5bn.

Net income also shrank 6.4 per cent to $139.3m.

The distributor blamed the drop on the declining demand for PC ecosystem products, affecting the performance of its endpoint solutions portfolio.

However TD SYNNEX said the slump was partially offset by growth in its advanced solutions arm.

"Our third quarter results demonstrate the momentum we are seeing on our deliberate and strategic goal to expand in high growth technologies, with robust margin expansion in the Americas and strong EPS generation," said TD SYNNEX CEO Rich Hume.

"Our expansive portfolio of products, solutions, and services, along with a relentless focus on execution allowed us to successfully navigate the post-Covid IT spending environment, while our resilient business model enabled us to generate over $500m in cash from operations, equipping us to increase capital returned to shareholders via share repurchases."

Breaking its results down geographically, the distributor saw results in both Europe and the Americas slide.

Revenue in Europe was down 9.7 per cent to $4.2bn, while figures fell by double digits across the pond by 10.3 per cent to $8.9bn.

Fourth quarter outlook

Predicting its fiscal Q4 figures, TD SYNNEX forecasts revenues to come in between $14bn - $15bn.

While net income is expected in the range of $116m - $162m.