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
2024/Q4
Year Over Year
Quarter Over Quarter
Total Revenue
884.79M
-12.50%
0.97%
Gross Margin
10.60%
-1.21%
-6.69%
Operating Margin
3.03%
-22.31%
10.18%
Net Margin
3.70%
45.67%
110.23%
EPS
1.29
27.72%
111.48%
No Data Available
SCSC Earnings Analysis
Scansource Inc Corporation (SCSC.O) Earnings Conference Call
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.
