ScanSource Earnings: Here’s Why Investors are Ambivalent Now

ScanSource, Inc. (NASDAQ:SCSC) delivered a profit and beat Wall Street’s expectations, BUT came up short on beating the revenue expectation. The revenue miss is a negative sign to shareholders seeking high growth out of the company.

ScanSource, Inc. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share increased 0% to $0.71 in the quarter versus EPS of $0.71 in the year-earlier quarter.

Revenue: Decreased 5.54% to $712.7 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: ScanSource, Inc. reported adjusted EPS income of $0.71 per share. By that measure, the company beat the mean analyst estimate of $0.61. It missed the average revenue estimate of $724.15 million.

Quoting Management: “We saw record quarterly sales in our North America Communications and Security business units,” said Mike Baur, CEO, ScanSource, Inc. “The lack of big deals in our POS & Barcode business units, however, led to lower than expected fourth quarter sales. Despite lower sales, our return on invested capital increased to 17.2%, excluding the impairment charges, driven by higher margins, better working capital management, and our focus on value-added growth.”

Key Stats (on next page)…