ScanSource (NASDAQ:SCSC) Sets New 1-Year High on Better-Than-Expected Earnings

Key Points

• ScanSource reported stronger-than-expected quarterly results: EPS was $1.46 versus the $1.14 consensus estimate, while revenue reached $953.11 million, up 17.3% year over year and well above estimates.
• The earnings beat sent shares to a new 52-week high of $66.78, with the stock last trading near $61.03—up sharply from its prior close of $51.42.
• Analyst sentiment remains cautious, with the stock carrying a consensus “Hold” rating and a $43 price target, despite institutional investors owning 97.91% of outstanding shares.

ScanSource, Inc. (NASDAQ:SCSC - Get Free Report) hit a new 52-week high during mid-day trading on Thursday following a better than expected earnings announcement. The company traded as high as $66.78 and last traded at $61.0310, with a volume of 139051 shares trading hands. The stock had previously closed at $51.42.

The industrial products company reported $1.46 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $1.14 by $0.32. ScanSource had a net margin of 2.38% and a return on equity of 9.35%. The business had revenue of $953.11 million for the quarter, compared to analyst estimates of $814.35 million. During the same quarter in the prior year, the business posted $1.02 EPS. The company's revenue for the quarter was up 17.3% on a year-over-year basis.

Analyst Upgrades and Downgrades

SCSC has been the subject of a number of research reports. Northcoast Research downgraded shares of ScanSource from a "buy" rating to a "neutral" rating in a report on Monday. Wall Street Zen raised shares of ScanSource from a "hold" rating to a "buy" rating in a report on Saturday, August 8th. Finally, Weiss Ratings upgraded shares of ScanSource from a "hold (c)" rating to a "hold (c+)" rating in a research note on Friday, May 29th. Four research analysts have rated the stock with a Hold rating, Based on data from MarketBeat.com, the stock currently has an average rating of "Hold" and a consensus price target of $43.00.

Institutional Inflows and Outflows

Several large investors have recently bought and sold shares of SCSC. BlackRock Inc. bought a new stake in shares of ScanSource during the second quarter valued at approximately $200,140,000. Vanguard Group Inc. increased its holdings in shares of ScanSource by 2.9% in the fourth quarter. Vanguard Group Inc. now owns 2,827,007 shares of the industrial products company's stock worth $110,423,000 after acquiring an additional 78,993 shares in the last quarter. Wasatch Advisors LP boosted its holdings in shares of 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 buying an additional 294,624 shares during the period. Pzena Investment Management LLC bought a new position in ScanSource during the 2nd quarter worth about $57,807,000. Finally, LSV Asset Management raised its position in ScanSource by 40.6% in the 4th quarter. LSV Asset Management now owns 847,863 shares of the industrial products company's stock valued at $33,118,000 after buying an additional 244,903 shares during the last quarter. 97.91% of the stock is owned by institutional investors and hedge funds.

ScanSource Stock Up 15.5%

The stock's fifty day moving average price is $52.91 and its 200-day moving average price is $44.39. The company has a quick ratio of 1.20, a current ratio of 1.86 and a debt-to-equity ratio of 0.11. The company has a market capitalization of $1.21 billion, a price-to-earnings ratio of 18.04, a P/E/G ratio of 0.81 and a beta of 1.28.

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.

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