Technology distribution company ScanSource (NASDAQ:SCSC) will be reporting earnings this Thursday before market hours. Here’s what to look for.
ScanSource missed analysts’ revenue expectations last quarter, reporting revenues of $766.5 million, up 2.5% year on year. It was a disappointing quarter for the company, with full-year revenue guidance missing analysts’ expectations significantly and a significant miss of analysts’ revenue 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 grow 2.6% year on year, a reversal from the 6.3% decrease it recorded in the same quarter last year.
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 Q1 results, giving us a hint as to what we can expect. TD SYNNEX delivered year-on-year revenue growth of 18.1%, beating analysts’ expectations by 9.5%, and Avnet reported revenues up 33.9%, topping estimates by 10.3%. TD SYNNEX traded up 16.3% following the results while Avnet was also up 5.4%.
Read our full analysis of TD SYNNEX’s results here and Avnet’s results here.
There has been positive sentiment among investors in the it distribution & solutions segment, with share prices up 11% on average over the last month. ScanSource is up 14.5% during the same time and is heading into earnings with an average analyst price target of $51.67 (compared to the current share price of $42.26).
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