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TD Synnex missed quarterly profit and sales estimates as certain expenses increased.
The IT products provider’s gross profit and gross margin fell.
TD Synnex’s current-quarter earnings and revenue outlooks were below forecasts.
TD Synnex (SNX) shares sank 17% Thursday when the distributor of IT products posted worse-than-expected results and guidance as some of its expenses grew.
The company reported fiscal 2025 first-quarter adjusted earnings per share (EPS) of $2.80 on revenue that rose 4% year-over-year to $14.53 billion. Both missed Visible Alpha forecasts. Gross profit slipped almost 1% to $998.0 million, and gross margin dropped 33 basis points (bps) to 6.87%.
Selling, general, and administrative expenses (SG&A) were up 3% to $692.5 million, and interest expense and finance charges increased 16% to $87.9 million.
The company sees current-quarter adjusted EPS of $2.45 to $2.95, and revenue of $13.9 billion to $14.7 billion. Analysts surveyed by Visible Alpha were looking for $3.02 and $14.7 billion, respectively.
Shares of TD Synnex fell to their lowest level in more than a year.
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