Why ScanSource Stock Crashed 20% This Morning
Shares of ScanSource (NASDAQ: SCSC), a small-cap distributor of barcode readers and point-of-sale scanners, checked out Wednesday morning -- down 19.5% as of 10:40 a.m. ET today after the company missed on earnings in its 2022 fiscal fourth-quarter financial update last night.
Heading into the quarter, analysts had forecast ScanSource would earn $0.97 per share, pro forma, but last night the company announced its profits were only $0.91 per share (also pro forma). This was despite revenue coming in strong: up 12.9% year over year to $962.3 million.
The earnings miss notwithstanding, today's sell-off is something of a surprise given that ScanSource ended fiscal 2022 on a high note. Sales growth for the full year was only 12%, so the jump to 12.9% in the fourth quarter was an acceleration for the business. Gross margins expanded by about 30 basis points to 11.5% (although this was worse than the full-year gross margin of 12.1%).
Source Fool.com
