ScanSource (NASDAQ:SCSC) Shares Gap Down on Disappointing Earnings

Shares of ScanSource, Inc. (NASDAQ:SCSC) gapped down prior to trading on Thursday following a dissappointing earnings announcement. The stock had previously closed at $44.33, but opened at $36.94. ScanSource shares last traded at $37.68, with a volume of 81,143 shares traded.

The industrial products company reported $0.80 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $1.00 by ($0.20). The firm had revenue of $766.51 million for the quarter, compared to the consensus estimate of $782.46 million. ScanSource had a return on equity of 9.72% and a net margin of 2.48%.The firm’s quarterly revenue was up 2.5% compared to the same quarter last year. During the same quarter in the previous year, the business posted $0.85 earnings per share.

Analyst Ratings Changes

Several equities analysts have recently weighed in on the company. Weiss Ratings restated a “hold (c)” rating on shares of ScanSource in a report on Monday, December 29th. Wall Street Zen cut shares of ScanSource from a “buy” rating to a “hold” rating in a research note on Saturday, January 17th. Finally, Zacks Research cut shares of ScanSource from a “strong-buy” rating to a “hold” rating in a research note on Tuesday, October 21st. One research analyst has rated the stock with a Buy rating and three have given a Hold rating to the stock. According to MarketBeat, ScanSource has an average rating of “Hold” and a consensus target price of $42.50.

Insider Transactions at ScanSource

In other ScanSource news, CEO Michael L. Baur sold 9,559 shares of the stock in a transaction dated Monday, December 15th. The shares were sold at an average price of $40.82, for a total value of $390,198.38. Following the transaction, the chief executive officer directly owned 191,971 shares of the company’s stock, valued at $7,836,256.22. This represents a 4.74% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, CFO Stephen Jones sold 5,020 shares of the business’s stock in a transaction that occurred on Thursday, December 11th. The stock was sold at an average price of $42.30, for a total value of $212,346.00. Following the sale, the chief financial officer owned 83,326 shares of the company’s stock, valued at approximately $3,524,689.80. This represents a 5.68% decrease in their position. The disclosure for this sale is available in the SEC filing. In the last quarter, insiders sold 25,020 shares of company stock worth $1,035,669. 3.18% of the stock is owned by company insiders.

Institutional Trading of ScanSource

Institutional investors have recently modified their holdings of the stock. Wasatch Advisors LP raised its stake in ScanSource by 34.9% in the third quarter. Wasatch Advisors LP now owns 1,139,573 shares of the industrial products company’s stock valued at $50,130,000 after purchasing an additional 294,624 shares in the last quarter. SG Americas Securities LLC raised its position in shares of ScanSource by 2,835.9% in the 4th quarter. SG Americas Securities LLC now owns 283,756 shares of the industrial products company’s stock valued at $11,084,000 after buying an additional 274,091 shares in the last quarter. Jacobs Levy Equity Management Inc. lifted its holdings in shares of ScanSource by 65.6% during the 3rd quarter. Jacobs Levy Equity Management Inc. now owns 389,915 shares of the industrial products company’s stock worth $17,152,000 after acquiring an additional 154,518 shares during the period. Jane Street Group LLC lifted its holdings in shares of ScanSource by 148.3% during the 1st quarter. Jane Street Group LLC now owns 199,799 shares of the industrial products company’s stock worth $6,795,000 after acquiring an additional 119,317 shares during the period. Finally, Teacher Retirement System of Texas boosted its position in shares of ScanSource by 333.8% during the 4th quarter. Teacher Retirement System of Texas now owns 153,041 shares of the industrial products company’s stock worth $5,978,000 after acquiring an additional 117,762 shares in the last quarter. 97.91% of the stock is currently owned by institutional investors.

ScanSource Price Performance

The firm has a market capitalization of $811.89 million, a P/E ratio of 11.53, a PEG ratio of 0.71 and a beta of 1.28. The company has a quick ratio of 1.32, a current ratio of 2.16 and a debt-to-equity ratio of 0.14. The business’s 50 day moving average is $41.05 and its 200-day moving average is $41.82.

ScanSource Company Profile

ScanSource, Inc is a global provider of technology products and solutions designed to help businesses enhance operational efficiency and customer engagement. The company specializes in the distribution of point-of-sale (POS) systems, barcode and data capture devices, networking and communications equipment, and value-added software and cloud services. By combining hardware, software and professional services, ScanSource supports channel partners in delivering end-to-end solutions across multiple industries, including retail, hospitality, healthcare and logistics.

Founded in 1992 and headquartered in Greenville, South Carolina, ScanSource has built a broad international footprint, serving customers throughout North, Central and South America as well as Europe, the Middle East and Africa.