Why did SNX miss Q1 2025 forecasts?

TD SYNNEX (SNX) missed Q1 2025 forecasts due to several key factors:

1. **Hyve Business Challenges**: The performance of Hyve, a component of TD SYNNEX, was below expectations due to component shipment delays and demand shortfalls. These issues may persist for a few quarters, impacting the company's overall performance.
2. **Revenue Shortfall**: While the company's revenue grew by 4% year-over-year, it fell short of the forecast by $290 million. This shortfall was particularly notable in the Americas and Europe regions, where revenue was below analyst estimates.
3. **Earnings Shortfall**: The company's non-GAAP EPS of $2.80 for the quarter missed the expectation by $0.11. This shortfall was due to higher operating expenses and lower gross profit margin, which declined by 40 basis points year-over-year, primarily due to challenges in the Hyve business.
4. **Interest Expenses**: The company faced higher interest expenses than expected, amounting to $88 million, due to increased working capital requirements, particularly in Hyve.

In summary, SNX's miss of Q1 2025 forecasts was due to challenges in its Hyve business, revenue shortfall in key regions, earnings shortfall due to higher operating expenses and lower gross profit margin, and higher interest expenses. These factors combined to affect the company's financial performance, leading to the shortfall of Q1 2025 forecasts.