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ScanSource (SCSC) Reports Q2: Everything You Need To Know Ahead Of Earnings

SCSC Cover Image

Technology distribution company ScanSource (NASDAQ: SCSC) will be reporting results this Thursday morning. Here’s what to look for.

ScanSource missed analysts’ revenue expectations by 9.4% last quarter, reporting revenues of $704.8 million, down 6.3% year on year. It was a slower quarter for the company, with full-year revenue guidance missing analysts’ expectations significantly.

Is ScanSource a buy or sell going into earnings? Read our full analysis here, it’s free.

This quarter, analysts are expecting ScanSource’s revenue to grow 4.1% year on year to $776.9 million, Adjusted earnings are expected to come in at $0.92 per share.

ScanSource Total Revenue

The majority of analysts covering the company have reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings.

Looking at ScanSource’s peers in the it distribution & solutions segment, some have already reported their Q2 results, giving us a hint as to what we can expect. ePlus delivered year-on-year revenue growth of 19%, beating analysts’ expectations by 23.3%, and CDW reported revenues up 10.2%, topping estimates by 7.8%. ePlus traded up 9.1% following the results while CDW was down 2.1%.

Read our full analysis of ePlus’s results here and CDW’s results here.

Investors in the it distribution & solutions segment have had steady hands going into earnings, with share prices flat over the last month. ScanSource is up 6.6% during the same time and is heading into earnings with an average analyst price target of $54 (compared to the current share price of $43.06).

When a company has more cash than it knows what to do with, buying back its own shares can make a lot of sense–as long as the price is right. Luckily, we’ve found one, a low-priced stock that is gushing free cash flow AND buying back shares. Click here to claim your Special Free Report on a fallen angel growth story that is already recovering from a setback.

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