TD Synnex has reported a decline in third-quarter revenue as spending on new computers tails off following the COVID-19 pandemic.
The IT services company’s shares fell 4.2% to $97.60 by midday in New York.
Revenue for the quarter ended August 31, 2023, slid 9.1% to $14 million, at the midpoint of its own guidance but below the $14.1 million pencilled in by Wall Street analysts.
It blamed the drop in sales on declining demand for PC ecosystem products, which affected the performance of its Endpoint Solutions portfolio. This was partially offset by growth in its Advanced Solutions portfolio.
Adjusted diluted earnings per share (EPS) of $2.78 beat its own guidance and was also ahead of the $2.48 expected by the Street.
“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,” CEO Richard Hume commented.
“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.”
The company has guided for 4Q revenue of $14 billion to $15 billion and adjusted diluted EPS of $2.40 to $2.90.
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