Why did FLEX's Q2 2025 EPS miss expectations?

Flex's Q2 2025 EPS did not miss expectations due to unusual items and tax benefits that impacted its financial results. 1. **Unusual Items**: Flex's profit was reduced by $130 million due to unusual items over the last year. These deductions, although disappointing, are often one-time in nature. Assuming these unusual expenses do not recur, Flex is expected to report higher profits in the future. 2. **Tax Benefits**: Flex received a tax benefit that contributed $150 million to its bottom line. While such benefits are positive, they are often one-time in nature and may not be sustainable. If this tax benefit is not repeated, Flex's statutory profit levels could drop. In summary, Flex's Q2 2025 EPS did not miss expectations due to a combination of unusual items and tax benefits. These factors, while impacting profitability, are largely one-time in nature and do not necessarily reflect the company's underlying performance or future prospects.