The 10-second takeaway
For the quarter ended Dec. 31 (Q2), ScanSource met expectations on revenue and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue grew, and GAAP earnings per share dropped.
Margins dropped across the board.
ScanSource logged revenue of $782.7 million. The three analysts polled by S&P Capital IQ expected sales of $783.1 million. Sales were 14% higher than the prior-year quarter's $683.6 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions.
EPS came in at $0.77. The four earnings estimates compiled by S&P Capital IQ averaged $0.69 per share. GAAP EPS of $0.77 for Q2 were 3.8% lower than the prior-year quarter's $0.80 per share.
Source: S&P Capital IQ. Quarterly periods. Figures may be non-GAAP to maintain comparability with estimates.
For the quarter, gross margin was 10.2%, 10 basis points worse than the prior-year quarter. Operating margin was 4.0%, 50 basis points worse than the prior-year quarter. Net margin was 2.7%, 50 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $703.1 million. On the bottom line, the average EPS estimate is $0.63.
Next year's average estimate for revenue is $3.03 billion. The average EPS estimate is $2.74.
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 85 members out of 89 rating the stock outperform, and four members rating it underperform. Among 26 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 25 give ScanSource a green thumbs-up, and one gives it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on ScanSource is outperform, with an average price target of $42.50.
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Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.