TD Synnex Stock Sinks as Expenses Increase

TD Synnex, a distributor of IT products, experienced a significant drop in its shares, falling 17% after missing quarterly profit and sales estimates. The company’s fiscal 2025 first-quarter results showed an adjusted earnings per share (EPS) of $2.80 on revenue of $14.53 billion, which was below Visible Alpha forecasts. Gross profit decreased by almost 1% to $998.0 million, with gross margin dropping 33 basis points to 6.87%.

One of the main factors contributing to TD Synnex’s disappointing performance was the increase in selling, general, and administrative expenses (SG&A), which rose by 3% to $692.5 million. Additionally, interest expense and finance charges grew by 16% to $87.9 million. These rising costs impacted the company’s overall profitability.

Looking ahead, TD Synnex provided a current-quarter outlook that fell short of analyst expectations. The company expects adjusted EPS to be in the range of $2.45 to $2.95, with revenue projected to be between $13.9 billion and $14.7 billion. Analysts surveyed by Visible Alpha were anticipating higher figures of $3.02 for EPS and $14.7 billion for revenue.

As a result of these disappointing results and guidance, TD Synnex’s shares reached their lowest level in over a year. Investors reacted negatively to the news, causing a significant decline in the company’s stock price.

For more information on TD Synnex’s performance and the factors influencing its recent results, you can read the original article on Investopedia. It provides additional insights into the challenges facing the IT products provider and offers valuable context for understanding the implications of its financial performance.