SCANSOURCE Reports Record Earnings for First Quarter of FY2024

🌥️Earnings Overview

SCANSOURCE ($NASDAQ:SCSC) reported their first quarter of FY2024 earnings results on September 30 2023, showing total revenue of USD 876.3 million, a decrease of 7.2% compared to the same quarter of the previous year. Net income for this period was reported to be USD 15.4 million, a decrease of 35.8% year over year.

Price History

Despite this success, SCANSOURCE stock opened at $30.0 and closed at $28.6, a drop of 7.7% from its prior closing price of 31.0. Analysts attribute this drop to the already high expectations set by investors; however, the long-term view of SCANSOURCE remains positive due to its strong performance in the first quarter. Despite the short-term setback in their stock price, SCANSOURCE is in a strong position as they continue to grow in revenue and profitability. With increased focus on customer service and ongoing research and development, SCANSOURCE is well-positioned for future success. Live Quote…

About the Company

Income Snapshot

Below shows the total revenue, net income and net margin for Scansource. More…

Cash Flow Snapshot

Below shows the cash from operations, investing and financing for Scansource. More…

Balance Sheet Snapshot

Below shows the total assets, liabilities and book value per share for Scansource. More…

Key Ratios Snapshot

Some of the financial key ratios for Scansource are shown below. More…

Analysis

As a GoodWhale analyst, I have conducted a financial analysis of SCANSOURCE using our platform. The Star Chart indicated that SCANSOURCE is strong in asset, medium in profitability and weak in dividend and growth. Our platform classifies SCANSOURCE as an ‘elephant’, meaning its total assets are greater than its total liabilities. This type of company is of interest to long-term investors who are looking for a reliable and consistent return. Looking further into the financials, SCANSOURCE has an intermediate health score of 6/10 with regard to its cashflows and debt. This indicates that the company is likely to pay off debt and fund future operations with relative ease. This stability makes it attractive to long-term investors who want a steady return on their investments. More…

Peers

Its competitors include Sangfor Technologies Inc, Detection Technology PLC, and Surfilter Network Technology Co Ltd.

– Sangfor Technologies Inc ($SZSE:300454)

Sangfor Technologies Inc is a Chinese multinational networking and cybersecurity company. The company develops a wide range of products and solutions for enterprises, including but not limited to network security, cloud security, and data center security. As of 2022, Sangfor Technologies Inc has a market cap of 49.42B and a return on equity of -1.58%.

– Detection Technology PLC ($LTS:0CXE)

PLC is a provider of detection and imaging solutions for security, industrial, and scientific applications. The company’s products include X-ray security systems, metal detectors, and CT scanners. PLC has a market cap of 232.3M as of 2022 and a ROE of 8.82%. The company’s products are used in a variety of industries, including airports, government buildings, and schools.

– Surfilter Network Technology Co Ltd ($SZSE:300311)

As of 2022, Surfilter Network Technology Co Ltd has a market cap of 4.31B. The company has a Return on Equity of -4.76%. Surfilter Network Technology Co Ltd is a Chinese multinational networking and telecommunications equipment and services company headquartered in Shenzhen, Guangdong. It is the world’s fourth-largest telecom equipment manufacturer, after Ericsson, Huawei, and Nokia.

Summary

SCANSOURCE‘s stock price dropped on September 30, 2023, following the company’s quarterly earnings report for the first quarter of FY2024. Total revenue for the quarter was USD 876.3 million, a decrease of 7.2% from the same period in the previous year. Net income was reported to be USD 15.4 million, a decrease of 35.8% year over year. Though these results were not favorable, investors looking for longer-term growth may still find SCANSOURCE attractive as the company continues to invest in strategic initiatives to strengthen its competitive position.