SCSC Earnings Prediction
The chart below shows how SCSC performed 10 days before and after its earnings report, based on data from the past quarters. Typically, SCSC sees a +2.45% change in stock price 10 days leading up to the earnings, and a +1.61% change 10 days following the report. On the earnings day itself, the stock moves by -3.55%. This data can give you a slight idea of what to expect for the next quarter's release.
SCSC Key Earning Data
SCSC Earnings Analysis
Positive
Strong Gross Profit Margin: Gross profit margin for Q2 was strong at 13.6%, reflecting a higher mix of recurring revenue.
Cost Management Success: Adjusted EBITDA margin for Q2 was 4.7%, demonstrating effective cost management despite a decline in net sales.
Recurring Revenue Contribution: Recurring revenue accounted for 32% of consolidated gross profits in Q2, indicating a solid revenue stream.
High Gross Profit Margin: Intelisys segment gross profit margin reached 99%, showcasing the profitability of the recurring revenue model.
Strong Cash Generation: Free cash flow generated year to date was $34 million, highlighting strong cash generation capabilities.
Negative
Net Sales Decline: Net sales declined 15.5% year over year for Q2, indicating a significant drop in revenue compared to the previous year.
Specialty Technology Sales Decline: In the Specialty Technology Solutions segment, net sales decreased 16% year over year and 4% quarter over quarter, highlighting ongoing challenges in large deals and foreign exchange headwinds.
Profitability Decline: Non-GAAP net income decreased by 4%, reflecting a decline in profitability despite efforts to maintain gross profit margins.
Negative Free Cash Flow: Free cash flow for the quarter was negative, with $8 million used due to late quarter timing for sales and vendor payments, indicating cash flow management issues.
Stagnant Business Performance: The Intelisys business was essentially flat year over year, suggesting stagnation in growth amidst competitive pressures and market challenges.
SCSC FAQs
How does SCSC typically perform around its earnings report dates?
SCSC's stock performance around earnings reports can vary, but historical data shows specific patterns, such as a +2.45% change leading up to the report and a +1.61% change in the 10 days following the release.
