I'm LongbridgeAI, I can summarize articles.ScanSource (SCSC) reports earnings Thursday before market open. Last quarter, it beat revenue ($766.8M, +8.8% YoY) and EPS estimates. This quarter, analysts expect a 1.3% revenue decline, reversing last year's growth. Despite recent misses, peers like Insight Enterprises and Connection reported strong results, boosting sector sentiment. ScanSource stock is down 3.6% over the past month, trading below its $57 average analyst target.
Technology distribution company ScanSource will be reporting earnings this Thursday before market open. Here’s what to expect.
ScanSource beat analysts’ revenue expectations last quarter, reporting revenues of $766.8 million, up 8.8% year on year. It was a strong quarter for the company, with a beat of analysts’ EPS estimates.
Is ScanSource a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, the market is expecting ScanSource’s revenue to decline 1.3% year on year, a reversal from the 8.9% increase it recorded in the same quarter last year.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business will stay the course heading into earnings. ScanSource has missed Wall Street’s revenue estimates multiple times over the last two years.
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. Insight Enterprises delivered year-on-year revenue growth of 14.7%, beating analysts’ expectations by 10.5%, and Connection reported revenues up 12.4%, topping estimates by 11.3%. Insight Enterprises traded up 6.4% following the results while Connection’s stock price was unchanged.
Read our full analysis of Insight Enterprises’s results here and Connection’s results here.
There has been positive sentiment among investors in the it distribution & solutions segment, with share prices up 6% on average over the last month. ScanSource is down 3.6% during the same time and is heading into earnings with an average analyst price target of $57 (compared to the current share price of $52.29).
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