Latest news with #ScanSource
Yahoo
4 days ago
- Business
- Yahoo
A Look Back at IT Distribution & Solutions Stocks' Q1 Earnings: TD SYNNEX (NYSE:SNX) Vs The Rest Of The Pack
The end of the earnings season is always a good time to take a step back and see who shined (and who not so much). Let's take a look at how it distribution & solutions stocks fared in Q1, starting with TD SYNNEX (NYSE:SNX). IT Distribution & Solutions will be buoyed by the increasing complexity of IT ecosystems, rising cloud adoption, and demand for cybersecurity solutions. Enterprises are less likely than ever to embark on these complicated journeys solo, and companies in the sector boast expertise and scale in these areas. However, cloud migration also means less need for hardware, which could dent demand for large portions of the product portfolio and hurt margins. Additionally, planning for potentially supply chain disruptions is ongoing, as the COVID-19 pandemic showed how damaging a pause in global trade could be in areas like semiconductor procurement. The 8 it distribution & solutions stocks we track reported a mixed Q1. As a group, revenues along with next quarter's revenue guidance were in line with analysts' consensus estimates. In light of this news, share prices of the companies have held steady as they are up 3.6% on average since the latest earnings results. Serving as the crucial middleman in the technology supply chain, TD SYNNEX (NYSE:SNX) is a global technology distributor that connects thousands of IT manufacturers with resellers, helping businesses access hardware, software, and technology solutions. TD SYNNEX reported revenues of $14.53 billion, up 4% year on year. This print fell short of analysts' expectations by 1.7%. Overall, it was a softer quarter for the company with a miss of analysts' EPS estimates. 'The strength of our business model allowed us to grow ahead of the market in Q1. Our end-to-end strategy, global reach and specialist go to market approach continues to empower us to capture a wide range of IT spend,' said Patrick Zammit, CEO of TD SYNNEX. The stock is down 2% since reporting and currently trades at $122.96. Read our full report on TD SYNNEX here, it's free. Starting as a small computer products seller in 1982 and evolving into a Fortune 1000 company, Connection (NASDAQ:CNXN) is a technology solutions provider that helps businesses and government agencies design, purchase, implement, and manage their IT infrastructure and systems. Connection reported revenues of $701 million, up 10.9% year on year, outperforming analysts' expectations by 8.5%. The business had an incredible quarter with a solid beat of analysts' EPS estimates. Connection scored the biggest analyst estimates beat and fastest revenue growth among its peers. The market seems content with the results as the stock is up 5% since reporting. It currently trades at $65.14. Is now the time to buy Connection? Access our full analysis of the earnings results here, it's free. Operating as a crucial link in the technology supply chain since 1992, ScanSource (NASDAQ:SCSC) is a hybrid distributor that connects hardware, software, and cloud services from technology suppliers to resellers and business customers. ScanSource reported revenues of $704.8 million, down 6.3% year on year, falling short of analysts' expectations by 9.4%. It was a slower quarter as it posted full-year revenue guidance missing analysts' expectations. ScanSource delivered the weakest performance against analyst estimates in the group. Interestingly, the stock is up 14.8% since the results and currently trades at $41.37. Read our full analysis of ScanSource's results here. Serving as a crucial bridge between technology manufacturers and end users since 1984, CDW (NASDAQ:CDW) is a multi-brand provider of information technology solutions that helps businesses and public sector organizations select, implement, and manage hardware, software, and IT services. CDW reported revenues of $5.20 billion, up 6.7% year on year. This print beat analysts' expectations by 5.3%. It was an exceptional quarter as it also put up a solid beat of analysts' EPS estimates. The stock is up 9.1% since reporting and currently trades at $179. Read our full, actionable report on CDW here, it's free. With a century-long history of adapting to technological evolution, Avnet (NASDAQ:AVT) is a global electronic components distributor that connects manufacturers of semiconductors and other electronic parts with businesses that need these components. Avnet reported revenues of $5.32 billion, down 6% year on year. This number met analysts' expectations. Zooming out, it was a mixed quarter as it also logged an impressive beat of analysts' EPS estimates. The stock is flat since reporting and currently trades at $51. Read our full, actionable report on Avnet here, it's free. Thanks to the Fed's rate hikes in 2022 and 2023, inflation has been on a steady path downward, easing back toward that 2% sweet spot. Fortunately (miraculously to some), all this tightening didn't send the economy tumbling into a recession, so here we are, cautiously celebrating a soft landing. The cherry on top? Recent rate cuts (half a point in September 2024, a quarter in November) have propped up markets, especially after Trump's November win lit a fire under major indices and sent them to all-time highs. However, there's still plenty to ponder — tariffs, corporate tax cuts, and what 2025 might hold for the economy. Want to invest in winners with rock-solid fundamentals? Check out our Top 5 Growth Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate.
Yahoo
21-05-2025
- Business
- Yahoo
Unpacking Q1 Earnings: ScanSource (NASDAQ:SCSC) In The Context Of Other IT Distribution & Solutions Stocks
Wrapping up Q1 earnings, we look at the numbers and key takeaways for the it distribution & solutions stocks, including ScanSource (NASDAQ:SCSC) and its peers. IT Distribution & Solutions will be buoyed by the increasing complexity of IT ecosystems, rising cloud adoption, and demand for cybersecurity solutions. Enterprises are less likely than ever to embark on these complicated journeys solo, and companies in the sector boast expertise and scale in these areas. However, cloud migration also means less need for hardware, which could dent demand for large portions of the product portfolio and hurt margins. Additionally, planning for potentially supply chain disruptions is ongoing, as the COVID-19 pandemic showed how damaging a pause in global trade could be in areas like semiconductor procurement. The 7 it distribution & solutions stocks we track reported a mixed Q1. As a group, revenues along with next quarter's revenue guidance were in line with analysts' consensus estimates. In light of this news, share prices of the companies have held steady as they are up 3.9% on average since the latest earnings results. Operating as a crucial link in the technology supply chain since 1992, ScanSource (NASDAQ:SCSC) is a hybrid distributor that connects hardware, software, and cloud services from technology suppliers to resellers and business customers. ScanSource reported revenues of $704.8 million, down 6.3% year on year. This print fell short of analysts' expectations by 9.4%. Overall, it was a slower quarter for the company with full-year revenue guidance missing analysts' expectations significantly. 'Our business performed well this quarter with both segments achieving year-over-year gross profit growth and higher EBITDA margins,' said Mike Baur, Chair and CEO of ScanSource, ScanSource delivered the weakest performance against analyst estimates of the whole group. Interestingly, the stock is up 11.6% since reporting and currently trades at $40.22. Read our full report on ScanSource here, it's free. Starting as a small computer products seller in 1982 and evolving into a Fortune 1000 company, Connection (NASDAQ:CNXN) is a technology solutions provider that helps businesses and government agencies design, purchase, implement, and manage their IT infrastructure and systems. Connection reported revenues of $701 million, up 10.9% year on year, outperforming analysts' expectations by 8.5%. The business had an incredible quarter with a solid beat of analysts' EPS estimates. Connection achieved the biggest analyst estimates beat and fastest revenue growth among its peers. The market seems happy with the results as the stock is up 10.1% since reporting. It currently trades at $68.29. Is now the time to buy Connection? Access our full analysis of the earnings results here, it's free. Serving as the crucial middleman in the technology supply chain, TD SYNNEX (NYSE:SNX) is a global technology distributor that connects thousands of IT manufacturers with resellers, helping businesses access hardware, software, and technology solutions. TD SYNNEX reported revenues of $14.53 billion, up 4% year on year, falling short of analysts' expectations by 1.7%. It was a softer quarter as it posted a miss of analysts' EPS estimates. As expected, the stock is down 1% since the results and currently trades at $124.15. Read our full analysis of TD SYNNEX's results here. Serving as a crucial bridge between technology manufacturers and end users since 1984, CDW (NASDAQ:CDW) is a multi-brand provider of information technology solutions that helps businesses and public sector organizations select, implement, and manage hardware, software, and IT services. CDW reported revenues of $5.20 billion, up 6.7% year on year. This print surpassed analysts' expectations by 5.3%. Overall, it was an exceptional quarter as it also recorded a solid beat of analysts' EPS estimates. The stock is up 14.7% since reporting and currently trades at $188.10. Read our full, actionable report on CDW here, it's free. With a century-long history of adapting to technological evolution, Avnet (NASDAQ:AVT) is a global electronic components distributor that connects manufacturers of semiconductors and other electronic parts with businesses that need these components. Avnet reported revenues of $5.32 billion, down 6% year on year. This result met analysts' expectations. Aside from that, it was a mixed quarter as it also produced a solid beat of analysts' EPS estimates but a significant miss of analysts' EPS guidance for next quarter estimates. The stock is flat since reporting and currently trades at $50.91. Read our full, actionable report on Avnet here, it's free. In response to the Fed's rate hikes in 2022 and 2023, inflation has been gradually trending down from its post-pandemic peak, trending closer to the Fed's 2% target. Despite higher borrowing costs, the economy has avoided flashing recessionary signals. This is the much-desired soft landing that many investors hoped for. The recent rate cuts (0.5% in September and 0.25% in November 2024) have bolstered the stock market, making 2024 a strong year for equities. Donald Trump's presidential win in November sparked additional market gains, sending indices to record highs in the days following his victory. However, debates continue over possible tariffs and corporate tax adjustments, raising questions about economic stability in 2025. Want to invest in winners with rock-solid fundamentals? Check out our Top 6 Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate. Join Paid Stock Investor Research Help us make StockStory more helpful to investors like yourself. Join our paid user research session and receive a $50 Amazon gift card for your opinions. Sign up here.
Yahoo
21-05-2025
- Business
- Yahoo
Are Options Traders Betting on a Big Move in ScanSource Stock?
Investors in ScanSource, Inc. SCSC need to pay close attention to the stock based on moves in the options market lately. That is because the Jun 20, 2025 $50 Call had some of the highest implied volatility of all equity options today. Implied volatility shows how much movement the market is expecting in the future. Options with high levels of implied volatility suggest that investors in the underlying stocks are expecting a big move in one direction or the other. It could also mean there is an event coming up soon that may cause a big rally or a huge sell-off. However, implied volatility is only one piece of the puzzle when putting together an options trading strategy. Clearly, options traders are pricing in a big move for ScanSource shares, but what is the fundamental picture for the company? Currently, ScanSource is a Zacks Rank #3 (Hold) in the Industrial Services industry that ranks in the Bottom 39% of our Zacks Industry Rank. Over the last 30 days, the Zacks Consensus Estimate for the current quarter has moved from 87 cents per share to 91 cents in that the way analysts feel about ScanSource right now, this huge implied volatility could mean there's a trade developing. Oftentimes, options traders look for options with high levels of implied volatility to sell premium. This is a strategy many seasoned traders use because it captures decay. At expiration, the hope for these traders is that the underlying stock does not move as much as originally expected. Check out the simple yet high-powered approach that Zacks Executive VP Kevin Matras has used to close recent double and triple-digit winners. In addition to impressive profit potential, these trades can actually reduce your to see the trades now >> Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report ScanSource, Inc. (SCSC) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
08-05-2025
- Business
- Yahoo
ScanSource (NASDAQ:SCSC) Misses Q1 Revenue Estimates
Technology distribution company ScanSource (NASDAQ:SCSC) fell short of the market's revenue expectations in Q1 CY2025, with sales falling 6.3% year on year to $704.8 million. The company's full-year revenue guidance of $3 billion at the midpoint came in 3.5% below analysts' estimates. Its non-GAAP profit of $0.86 per share was 11% above analysts' consensus estimates. Is now the time to buy ScanSource? Find out in our full research report. Revenue: $704.8 million vs analyst estimates of $777.9 million (6.3% year-on-year decline, 9.4% miss) Adjusted EPS: $0.86 vs analyst estimates of $0.78 (11% beat) Adjusted EBITDA: $33.55 million vs analyst estimates of $33.93 million (4.8% margin, 1.1% miss) The company dropped its revenue guidance for the full year to $3 billion at the midpoint from $3.3 billion, a 9.1% decrease EBITDA guidance for the full year is $142.5 million at the midpoint, above analyst estimates of $138.5 million Operating Margin: 3.2%, in line with the same quarter last year Free Cash Flow Margin: 9.2%, down from 21% in the same quarter last year Market Capitalization: $847.5 million 'Our business performed well this quarter with both segments achieving year-over-year gross profit growth and higher EBITDA margins,' said Mike Baur, Chair and CEO of ScanSource, Operating as a crucial link in the technology supply chain since 1992, ScanSource (NASDAQ:SCSC) is a hybrid distributor that connects hardware, software, and cloud services from technology suppliers to resellers and business customers. Reviewing a company's long-term sales performance reveals insights into its quality. Any business can experience short-term success, but top-performing ones enjoy sustained growth for years. With $2.97 billion in revenue over the past 12 months, ScanSource is a mid-sized business services company, which sometimes brings disadvantages compared to larger competitors benefiting from better economies of scale. As you can see below, ScanSource's demand was weak over the last five years. Its sales fell by 1.5% annually, a poor baseline for our analysis. We at StockStory place the most emphasis on long-term growth, but within business services, a half-decade historical view may miss recent innovations or disruptive industry trends. ScanSource's recent performance shows its demand remained suppressed as its revenue has declined by 11.6% annually over the last two years. This quarter, ScanSource missed Wall Street's estimates and reported a rather uninspiring 6.3% year-on-year revenue decline, generating $704.8 million of revenue. Looking ahead, sell-side analysts expect revenue to grow 9.9% over the next 12 months, an improvement versus the last two years. This projection is commendable and implies its newer products and services will spur better top-line performance. Here at StockStory, we certainly understand the potential of thematic investing. Diverse winners from Microsoft (MSFT) to Alphabet (GOOG), Coca-Cola (KO) to Monster Beverage (MNST) could all have been identified as promising growth stories with a megatrend driving the growth. So, in that spirit, we've identified a relatively under-the-radar profitable growth stock benefiting from the rise of AI, available to you FREE via this link. Operating margin is one of the best measures of profitability because it tells us how much money a company takes home after subtracting all core expenses, like marketing and R&D. ScanSource was profitable over the last five years but held back by its large cost base. Its average operating margin of 3% was weak for a business services business. On the plus side, ScanSource's operating margin rose by 1.1 percentage points over the last five years. This quarter, ScanSource generated an operating profit margin of 3.2%, in line with the same quarter last year. This indicates the company's overall cost structure has been relatively stable. We track the long-term change in earnings per share (EPS) for the same reason as long-term revenue growth. Compared to revenue, however, EPS highlights whether a company's growth is profitable. ScanSource's EPS grew at an unimpressive 5.4% compounded annual growth rate over the last five years. On the bright side, this performance was better than its 1.5% annualized revenue declines and tells us management adapted its cost structure in response to a challenging demand environment. Diving into the nuances of ScanSource's earnings can give us a better understanding of its performance. As we mentioned earlier, ScanSource's operating margin was flat this quarter but expanded by 1.1 percentage points over the last five years. On top of that, its share count shrank by 6.9%. These are positive signs for shareholders because improving profitability and share buybacks turbocharge EPS growth relative to revenue growth. In Q1, ScanSource reported EPS at $0.86, up from $0.69 in the same quarter last year. This print easily cleared analysts' estimates, and shareholders should be content with the results. Over the next 12 months, Wall Street expects ScanSource's full-year EPS of $3.35 to grow 10.8%. We enjoyed seeing ScanSource beat on EPS this quarter and provide full-year EBITDA guidance that topped analysts' expectations. On the other hand, it lowered its full-year revenue guidance, and its revenue fell short of Wall Street's estimates. Overall, this was a weaker quarter, but the stock traded up 2.4% to $36.91 immediately following the results. So should you invest in ScanSource right now? We think that the latest quarter is just one piece of the longer-term business quality puzzle. Quality, when combined with valuation, can help determine if the stock is a buy. We cover that in our actionable full research report which you can read here, it's free. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
27-04-2025
- Business
- Yahoo
3 Volatile Stocks Facing Headwinds
Market swings can be tough to stomach, and volatile stocks often experience exaggerated moves in both directions. While many thrive during risk-on environments, many also struggle to maintain investor confidence when the ride gets bumpy. At StockStory, our job is to help you avoid costly mistakes and stay on the right side of the trade. That said, here are three volatile stocks to avoid and some better opportunities instead. Rolling One-Year Beta: 1.32 Operating as a crucial link in the technology supply chain since 1992, ScanSource (NASDAQ:SCSC) is a hybrid distributor that connects hardware, software, and cloud services from technology suppliers to resellers and business customers. Why Do We Avoid SCSC? Customers postponed purchases of its products and services this cycle as its revenue declined by 10.4% annually over the last two years Earnings per share decreased by more than its revenue over the last two years, showing each sale was less profitable ROIC of 7.8% reflects management's challenges in identifying attractive investment opportunities At $32.96 per share, ScanSource trades at 9x forward price-to-earnings. Dive into our free research report to see why there are better opportunities than SCSC. Rolling One-Year Beta: 1.38 With a strong store presence in Texas, California, Florida, and Oklahoma, Boot Barn (NYSE:BOOT) is a western-inspired apparel and footwear retailer. Why Are We Hesitant About BOOT? Disappointing same-store sales over the past two years show customers aren't responding well to its product selection and store experience Revenue base of $1.85 billion puts it at a disadvantage compared to larger competitors exhibiting economies of scale Capital intensity has ramped up over the last year as its free cash flow margin decreased by 3.7 percentage points Boot Barn is trading at $102.59 per share, or 15.6x forward price-to-earnings. To fully understand why you should be careful with BOOT, check out our full research report (it's free). Rolling One-Year Beta: 1.26 Known for its playful atmosphere that features carnival elements, Shoe Carnival (NASDAQ:SCVL) is a retailer that sells footwear from mainstream brands for the entire family. Why Is SCVL Risky? Lagging same-store sales over the past two years suggest it might have to change its pricing and marketing strategy to stimulate demand Modest revenue base of $1.20 billion gives it less fixed cost leverage and fewer distribution channels than larger companies Forecasted revenue decline of 1.4% for the upcoming 12 months implies demand will fall off a cliff Shoe Carnival's stock price of $18.83 implies a valuation ratio of 6.2x forward price-to-earnings. Dive into our free research report to see why there are better opportunities than SCVL. Market indices reached historic highs following Donald Trump's presidential victory in November 2024, but the outlook for 2025 is clouded by new trade policies that could impact business confidence and growth. While this has caused many investors to adopt a "fearful" wait-and-see approach, we're leaning into our best ideas that can grow regardless of the political or macroeconomic climate. Take advantage of Mr. Market by checking out our Top 6 Stocks for this week. This is a curated list of our High Quality stocks that have generated a market-beating return of 175% over the last five years. Stocks that made our list in 2019 include now familiar names such as Nvidia (+2,183% between December 2019 and December 2024) as well as under-the-radar businesses like Sterling Infrastructure (+1,096% five-year return). Find your next big winner with StockStory today for free.
