Shares of ScanSource (NASDAQ:SCSC) sank on Tuesday after the technology products distributor reported its fiscal fourth-quarter results. The numbers were mixed relative to analyst expectations, with sales down more than 20% due to the COVID-19 pandemic. ScanSource stock was down about 11.5% at 11:20 a.m. EDT.
ScanSource reported fourth-quarter revenue of $636.5 million, down 22% year over year and just barely ahead of the average analyst estimate. Organic sales were down 19%. The company saw lower demand from its customers due to the impact of the pandemic.
One bright spot for ScanSource was Intelisys, which sells business telecommunications services. Revenue from Intelisys grew by 15% in the quarter.
Adjusted earnings per share came in at $0.19, down from $0.75 in the prior-year period and $0.02 below the average analyst estimate. The company lost $4.29 per share under generally accepted accounting principles (GAAP), largely due to goodwill and asset impairment charges driven by lower revenue projections.
ScanSource announced a $30 million expense reduction plan in July, which will help offset the revenue impacts of the pandemic. The company reduced its selling, general, and administrative expenses by about 7.5% in the fourth quarter.
The demand environment for ScanSource remains uncertain as the pandemic continues to play out in the United States. Including Tuesday's decline, the stock is down about 40% since the start of the year.