ScanSource (NASDAQ:SCSC) Shares Gap Down Following Weak Earnings

ScanSource, Inc. (NASDAQ:SCSC)’s share price gapped down before the market opened on Tuesday following a weaker than expected earnings announcement. The stock had previously closed at $48.91, but opened at $46.30. ScanSource shares last traded at $45.68, with a volume of 40,502 shares traded.

The industrial products company reported $0.80 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $0.93 by ($0.13). ScanSource had a net margin of 2.31% and a return on equity of 8.28%. The business had revenue of $746.11 million for the quarter, compared to analyst estimates of $838.60 million. During the same quarter in the prior year, the business earned $0.76 earnings per share. The firm’s quarterly revenue was down 21.2% compared to the same quarter last year.

Wall Street Analysts Forecast Growth

Separately, Raymond James lowered shares of ScanSource from an “outperform” rating to a “market perform” rating in a research report on Thursday, August 15th.

Insiders Place Their Bets

In other ScanSource news, CEO Michael L. Baur sold 9,053 shares of the company’s stock in a transaction on Monday, June 3rd. The shares were sold at an average price of $47.76, for a total value of $432,371.28. Following the completion of the transaction, the chief executive officer now directly owns 118,080 shares in the company, valued at approximately $5,639,500.80. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. In related news, CEO Michael L. Baur sold 7,798 shares of the stock in a transaction dated Thursday, July 11th. The shares were sold at an average price of $43.81, for a total transaction of $341,630.38. Following the sale, the chief executive officer now directly owns 118,080 shares of the company’s stock, valued at approximately $5,173,084.80. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, CEO Michael L. Baur sold 9,053 shares of the business’s stock in a transaction that occurred on Monday, June 3rd. The stock was sold at an average price of $47.76, for a total transaction of $432,371.28. Following the completion of the transaction, the chief executive officer now owns 118,080 shares of the company’s stock, valued at $5,639,500.80. The disclosure for this sale can be found here. Insiders have sold a total of 114,531 shares of company stock valued at $5,025,745 in the last quarter. Insiders own 4.56% of the company’s stock.

Institutional Inflows and Outflows

Several institutional investors have recently added to or reduced their stakes in SCSC. CWM LLC grew its holdings in ScanSource by 164.1% during the 2nd quarter. CWM LLC now owns 647 shares of the industrial products company’s stock valued at $29,000 after buying an additional 402 shares in the last quarter. nVerses Capital LLC bought a new position in shares of ScanSource during the second quarter worth $40,000. Quest Partners LLC purchased a new position in ScanSource during the second quarter valued at $41,000. GAMMA Investing LLC bought a new stake in ScanSource in the 4th quarter valued at $46,000. Finally, Innealta Capital LLC purchased a new stake in ScanSource in the 2nd quarter worth $58,000. 97.91% of the stock is currently owned by institutional investors.

ScanSource Price Performance

The firm has a market cap of $1.28 billion, a P/E ratio of 16.48, a P/E/G ratio of 1.44 and a beta of 1.44. The firm’s fifty day simple moving average is $46.73 and its 200 day simple moving average is $44.96. The company has a debt-to-equity ratio of 0.15, a quick ratio of 1.38 and a current ratio of 2.20.

ScanSource Company Profile

ScanSource, Inc distributes technology products and solutions in the United States, Canada, and internationally. It operates through two segments, Specialty Technology Solutions and Modern Communications & Cloud. The Specialty Technology Solutions segment provides a portfolio of solutions primarily for enterprise mobile computing, data capture, barcode printing, point of sale (POS), payments, networking, electronic physical security, cyber security, and other technologies.