By Denny Jacob
TD Synnex posted higher-than-expected revenue in its fourth quarter and said further growth is ahead as it expects spending on information technology services to ramp up.
The IT-services company recorded net income of $194.8 million, or $2.29 a share, for the quarter ended Nov. 30, up from $187.5 million, or $2.06 a share, a year earlier.
Stripping out certain one-time items, earnings were $3.09 a share. Analysts polled by FactSet expected $3.05 a share.
Revenue rose to $15.84 billion from $14.41 billion. Analysts polled by FactSet expected $15.22 billion.
The top-line gain was driven by growth in the company's advanced solutions and endpoint solutions portfolios.
Chief Executive Patrick Zammit said the company believes it is well-positioned for an expected increase in the IT spending environment.
TD Synnex forecast revenue between $14.4 billion and $15.2 billion for the first quarter, while analysts polled by FactSet expected $14.78 billion. It also guided for adjusted earnings per share in the range of $2.65 and $3.15; analysts polled by FactSet expected $2.95 a share in adjusted earnings.
The Fremont, Calif., company on Friday said its board increased its quarterly dividend 10% to 44 cents a share from 40 cents a share. The new payout, equal to $1.76 a year, represents an annual yield of 1.4% based on Thursday's closing price of $122.10. The dividend is payable on Jan. 31 to shareholders of record as of the close of business on Jan. 24.
Write to Denny Jacob at denny.jacob@wsj.com
(END) Dow Jones Newswires
January 10, 2025 08:43 ET (13:43 GMT)
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