Shares of technology distribution company ScanSource (NASDAQ:SCSC) fell 16.8% in the pre-market session after the company reported disappointing fourth-quarter results and provided a weaker-than-expected full-year forecast.
Technology distribution company ScanSource (NASDAQ:SCSC) missed Wall Street’s revenue expectations in Q4 CY2025 as sales rose 2.5% year on year to $766.5 million. The company’s full-year revenue guidance of $3.05 billion at the midpoint came in 3% below analysts’ estimates. Its non-GAAP profit of $0.80 per share was 20.8% below analysts’ consensus estimates.
Business services providers use their specialized expertise to help enterprises streamline operations and cut costs. Market leaders have certainly capitalized on outsourcing trends and digital transformation initiatives to boost sales,
helping fuel a 9.2% gain for the industry over the past six months.
This performance has closely followed the S&P 500.
A number of stocks jumped in the afternoon session after President Trump cooled fears of a transatlantic trade war by calling off scheduled tariffs on European allies.
Even if a company is profitable, it doesn’t always mean it’s a great investment.
Some struggle to maintain growth, face looming threats, or fail to reinvest wisely, limiting their future potential.
In the high-stakes world of global IT distribution, few names carry as much weight—or as much hardware—as TD Synnex (NYSE: SNX). Standing as the world’s largest IT solutions aggregator, the company serves as the critical bridge between the world’s most advanced technology manufacturers and the millions of businesses that need their products. On January 8, [...]
Wall Street is overwhelmingly bullish on the stocks in this article, with price targets suggesting significant upside potential.
However, it’s worth remembering that analysts rarely issue sell ratings, partly because their firms often seek other business from the same companies they cover.
Small-cap stocks can be incredibly lucrative investments because their lack of analyst coverage leads to frequent mispricings.
However, these businesses (and their stock prices) often stay small because their subscale operations make it harder to expand their competitive moats.
ScanSource currently trades at $39.84 per share and has shown little upside over the past six months, posting a small loss of 4.7%. The stock also fell short of the S&P 500’s 11.7% gain during that period.
Stocks trading between $10 and $50 can be particularly interesting as they frequently represent businesses that have survived their early challenges.
However, investors should remain vigilant as some may still have unproven business models, leaving them vulnerable to the ebbs and flows of the broader market.
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.
The Russell 2000 (^RUT) is home to many small-cap stocks, offering investors the chance to uncover hidden gems before the broader market catches on.
However, these companies often come with higher volatility and risk, as their smaller size makes them more vulnerable to economic downturns.
A number of stocks jumped in the afternoon session after comments from a key Federal Reserve official hinted at a potential interest rate cut in December.
Let’s dig into the relative performance of ScanSource (NASDAQ:SCSC) and its peers as we unravel the now-completed Q3 it distribution & solutions earnings season.
ScanSource’s third quarter results were met with a negative market reaction, as sales came in below Wall Street expectations and declined year over year. Management attributed the underperformance largely to continued weakness in Brazil and the effects of reporting more netted down revenue, particularly in the company’s Specialty Technology Solutions segment. CEO Mike Baur acknowledged that while some technology categories grew in North America, certain legacy areas remained in decline, tempering overall top-line momentum. Baur highlighted ongoing gross profit margin improvements and growth in recurring revenue, stating, “Each of our segments achieved year-over-year gross profit growth and higher EBITDA margins.”
Technology distribution company ScanSource (NASDAQ:SCSC) missed Wall Street’s revenue expectations in Q3 CY2025, with sales falling 4.6% year on year to $739.7 million. On the other hand, the company’s full-year revenue guidance of $3.2 billion at the midpoint came in 0.6% above analysts’ estimates. Its non-GAAP profit of $1.06 per share was 14% above analysts’ consensus estimates.
Technology distribution company ScanSource (NASDAQ:SCSC) missed Wall Street’s revenue expectations in Q3 CY2025, with sales falling 4.6% year on year to $739.7 million. On the other hand, the company’s full-year revenue guidance of $3.2 billion at the midpoint came in 0.6% above analysts’ estimates. Its non-GAAP profit of $1.06 per share was 14% above analysts’ consensus estimates.
ScanSource Q1 earnings beat on EPS but missed revenue estimates, causing a stock dip. The company reaffirmed its full-year outlook despite the sales decline.
Even if a company is profitable, it doesn’t always mean it’s a great investment.
Some struggle to maintain growth, face looming threats, or fail to reinvest wisely, limiting their future potential.
Business services providers play a critical role for enterprises, assisting them with everything from new hardware integrations to consulting and marketing. Market leaders have certainly capitalized on outsourcing trends and digital transformation initiatives to boost sales,
helping fuel a 26.3% gain for the industry over the past six months - 3.4 percentage points higher than the S&P 500.
