What's the outlook for SNX's next earnings?

**TD SYNNEX's (SNX) outlook for the next earnings report in Fiscal 2025 Q2 suggests a cautious approach.** Here's a detailed analysis: 1. **Revenue and EPS Expectations**: The company expects revenue to be between $13.9 billion and $14.7 billion, which is slightly below the analyst consensus of $14.72 billion. The estimated EPS range is $2.45 to $2.95, below the analyst forecast of $3.03. This indicates a potential earnings miss. 2. **Growth Prospects**: Despite the expected shortfall, TD SYNNEX anticipates growth in certain segments. For instance, non-GAAP gross billings are projected to be between $19.7 billion and $20.7 billion, reflecting a continued upward trend. The company's distribution segment is performing robustly, which could offset challenges in the Hyve segment. 3. **Financial Metrics**: The company's outlook includes a narrowed gross margin, with expectations of 6.87% to 7.20%. This suggests that while revenue growth may be steady, profitability could be under pressure due to increased costs or operational inefficiencies. 4. **Cash Flow and Dividends**: TD SYNNEX plans to return value to shareholders through dividends, with a declared quarterly cash dividend of $0.44 per share, a 10% increase from the previous quarter. However, negative free cash flow is anticipated, which could impact the company's financial flexibility and its ability to sustain dividend payments. 5. **Market Sentiment**: Following the Q1 earnings report, the company's stock experienced a significant drop, which may reflect market concerns over the Q2 outlook. This sentiment could persist until the market receives positive updates on operational improvements or new growth initiatives. In conclusion, while TD SYNNEX is expected to show growth in select areas, the Q2 2025 earnings outlook indicates potential challenges that could affect financial performance. Investors should monitor the company's strategic moves and operational performance closely to gauge its ability to meet these expectations.