Momentum investing is essentially the opposite of the tried-and-tested Wall Street adage -- "buy low and sell high." Investors following this investing style typically avoid betting on cheap stocks and waiting long for them to recover. They believe instead that one could make far more money in lesser time by "buying high and selling higher."Everyone likes betting on fast-moving trending stocks, but it isn't easy to determine the right entry point. These stocks often lose momentum when their future growth po ...

Investors interested in Industrial Products stocks should always be looking to find the best-performing companies in the group. Has ScanSource (SCSC) been one of those stocks this year? By taking a look at the stock's year-to-date performance in comparison to its Industrial Products peers, we might be able to answer that question.ScanSource is a member of the Industrial Products sector. This group includes 213 individual stocks and currently holds a Zacks Sector Rank of #12. The Zacks Sector Rank gauges the ...

The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find strong picks.Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader market. Value investors rely on traditional forms of a ...

Momentum investing is essentially an exception to the idea of "buying low and selling high." Investors following this style of investing are usually not interested in betting on cheap stocks and waiting long for them to recover. Instead, they believe that "buying high and selling higher" is the way to make far more money in lesser time.Everyone likes betting on fast-moving trending stocks, but it isn't easy to determine the right entry point. These stocks often lose momentum when their future growth potenti ...

Investors with an interest in Industrial Services stocks have likely encountered both ScanSource (SCSC) and W.W. Grainger (GWW) . But which of these two stocks offers value investors a better bang for their buck right now? We'll need to take a closer look.There are plenty of strategies for discovering value stocks, but we have found that pairing a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system produces the best returns. The proven Zacks Rank emphasizes companies ...

ScanSource (SCSC) came out with quarterly earnings of $0.84 per share, beating the Zacks Consensus Estimate of $0.77 per share. This compares to earnings of $0.74 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 9.09%. A quarter ago, it was expected that this technology products distributor would post earnings of $0.95 per share when it actually produced earnings of $0.80, delivering a surprise of -15.79%.Over the last four qua ...

Financial Performance - Net sales for Q1 FY25 totaled $775.6 million, down 11.5% year-over-year, with organic growth showing a decrease of 10.7%[6] - Gross profit decreased 4.6% year-over-year to $101.6 million, with a gross profit margin of 13.10%, up from 12.15% in the prior-year quarter[7] - GAAP net income for Q1 FY25 was $17.0 million, or $0.69 per diluted share, compared to $15.4 million, or $0.61 per diluted share, in the prior-year quarter[9] - Operating income for Q1 FY25 was $17.6 million, down from $24.1 million in the prior-year quarter[8] - Net income for the quarter was $16,974, an increase of 10% compared to $15,432 in the prior year[28] - Adjusted EBITDA for Q1 FY25 increased 2.1% to $35.7 million, representing 4.60% of net sales[10] - Adjusted EBITDA for the quarter was $35,666, up from $34,919, indicating a growth of 2.1% year-over-year[32] - Non-GAAP operating income for Q1 2024 was $27,509,000, compared to $28,478,000 in Q1 2023, reflecting a decrease of around 3%[39] - The overall financial performance indicates a mixed outlook with growth in net income and pre-tax income, but declines in operating income and SG&A expenses[39] Revenue and Sales - Recurring revenue increased 18.8% year-over-year, contributing to 31.8% of gross profit for Q1 FY25[7] - Net sales for the quarter ended September 30, 2024, were $775,580, a decrease of 11.5% compared to $876,305 in the same quarter of 2023[28] - Reported net sales for the Specialty Technology Solutions segment decreased by 11.9% to $752,299 thousand compared to $853,950 thousand in the previous year[34] - Non-GAAP net sales for the consolidated entity were $780,133 thousand, down 10.7% from $874,023 thousand year-over-year[37] - Net sales in the United States and Canada decreased by 10.0% to $712,019 thousand from $791,000 thousand year-over-year[37] - Net sales in Brazil reported a significant decline of 25.5%, falling to $63,561 thousand from $85,305 thousand[37] - The overall consolidated net sales reported were $775,580 thousand, reflecting an 11.5% decrease from $876,305 thousand in the prior year[34] Cash Flow and Assets - The company generated $42.5 million of free cash flow for Q1 FY25 and had cash and cash equivalents of $145.0 million as of September 30, 2024[10][11] - Cash and cash equivalents at the end of the period were $145,044, down from $185,460 at the beginning of the period[30] - The company reported a net cash provided by operating activities of $44,830, a decrease from $93,533 in the prior year[30] - Total assets increased to $1,786,509 from $1,779,032, reflecting a growth of 0.4%[27] - Total liabilities rose to $865,616, compared to $854,777, marking an increase of 1.4%[27] - Free cash flow (non-GAAP) for the quarter was $42,455 thousand, down from $91,218 thousand in the previous year[38] Acquisitions and Strategic Initiatives - ScanSource completed the acquisition of Resourcive on August 8, 2024, enhancing its Intelisys & Advisory segment[11] - The acquisition of Advantix on August 15, 2024, is aimed at launching the Integrated Solutions Group (ISG) to develop new solutions and services[12] Expenses and Costs - SG&A expenses for Q1 2024 were $71,706,000, down from $75,436,000 in Q1 2023, showing a reduction of approximately 5%[39] - The company reported intangible amortization expenses of $4,358,000 for Q1 2024, compared to $4,193,000 in Q1 2023, which is an increase of approximately 4%[39] - Cyberattack restoration costs for Q1 2024 were $76,000, while the previous year reported a recovery of $201,000, indicating a shift in financial impact[39] - The company incurred acquisition and divestiture costs of $377,000 in Q1 2024, while there were no such costs reported in Q1 2023[39] Outlook - FY25 annual outlook projects net sales between $3.1 billion and $3.5 billion, with adjusted EBITDA expected to be between $140 million and $160 million[5] - The average return on invested capital (Adjusted ROIC) for the quarter was 13.3%, up from 11.0% in the previous year[32]

Images By Tang Ming Tung/DigitalVision via Getty Images Introduction ScanSource, Inc. (NASDAQ:SCSC) recently reported its FY24 numbers, which the market seems to like, so I wanted to go over these and give some thoughts on the company's outlook and look at some valuation assumptions to match the potential outlook. I would like to see top-line growth return and margins improve before considering it a good investment. Therefore, I am initiating with a hold rating for now. Briefly on the Company ScanSource is ...

suwadee sangsriruang Thesis In my analysis, I'll demonstrate that SeanSource, Inc. (NASDAQ:SCSC) has shown solid growth and made some smart moves with acquisitions; but, their current financials are a mixed bag. Recent Q4 2024 numbers hit the mark with a Non-GAAP EPS of $0.80, but revenue fell short by $87.19 million. Type: · EPS Estimate · EPS Actual Period: Quarterly 4 T 1.25 FQ4 2024 1,00 EPS Estimate: 0.93 EPS Actual: 0.80 0.75 0.50 0.25 FQ4 2023 FQ1 2024 FQ2 2024 FQ3 2024 FQ4 2024 FQ1 2026 (E) FQ2 2026 ...

Financial Data and Key Metrics - Net sales declined 14% year-on-year for FY '24, with gross profits declining 11% [9] - Specialty Technology Solutions segment net sales declined 14% year-on-year, while gross profit declined 16% [10] - Modern Communication & Cloud segment net sales declined 13%, with gross profit declining 6% [10] - Free cash flow for FY '24 was $363 million, driven by a significant reduction in working capital [9] - Q4 free cash flow was $53 million, with strong gross profit margins and adjusted EBITDA margins [8] - FY '24 non-GAAP EPS was $3.08, compared to $3.85 last year [9] Business Line Performance - Specialty Technology Solutions segment saw a 14% decline in net sales and a 10% decline in gross profit year-on-year in Q4 [8] - Modern Communication & Cloud segment net sales declined 32% year-on-year in Q4, while Intelisys' net sales grew 6% [9] - Intelisys' Q4 end-user billings increased 9% year-on-year, totaling $2.67 billion in FY '24 [9] - Contact Center as a Service (CCaaS) billings grew 35% year-on-year in Q4, while UCaaS billings grew 13% [9] Market Performance - Physical security in the Specialty Technology Solutions segment and UCaaS/CCaaS in the Modern Communication & Cloud segment experienced good growth in Q4 [8] - Intelisys' recurring revenue represented 27% of the company's consolidated gross profits [10] Strategic Direction and Industry Competition - The company is accelerating its hybrid distribution strategy, which is expected to drive more demand and expand the total addressable market [4] - Investments in advanced technologies such as AI and private 5G are being made to support growth in the channel [5] - Two acquisitions, Resourcive and Advantix, were announced to support the hybrid distribution strategy, both being high-margin, recurring revenue businesses [6][7] - The company is focusing on partner segmentation to provide customized services to high-growth partners, including IT VARs, advanced technology partners, and telco agents [5] Management Commentary on Operating Environment and Future Outlook - The company expects a challenging demand environment to continue in the near term, particularly in the first half of FY '25 [11] - FY '25 net sales are expected to be between $3.1 billion and $3.5 billion, with adjusted EBITDA ranging between $140 million and $160 million [12] - The company aims to generate at least $70 million in free cash flow for FY '25, focusing on continuous working capital efficiency improvements [13] Other Important Information - The company ended Q4 with $185 million in cash and a net debt leverage ratio below zero on a trailing 12-month adjusted EBITDA basis [11] - Share repurchases totaled $22 million for Q4 and $43 million for FY '24 [11] - The company is building a cash culture, emphasizing predictable free cash flow as a key measure of success [13] Q&A Session Summary Question: Details on Ken Mills' appointment and its impact on Intelisys - Ken Mills, with extensive channel experience, was appointed President of Intelisys to drive strategy and vision, aiming for double-digit growth [14][15][16] Question: Contribution from recent acquisitions and guidance process for FY '25 - The acquisitions (Resourcive and Advantix) are small but accretive to EBITDA and included in FY '25 guidance, though not significant to consolidated results [17][18] - The company learned from FY '24 that predicting top-line growth is challenging, leading to wider guidance ranges for FY '25 [19][20] Question: Demand outlook relative to supplier commentary - The company faces difficulty in forecasting demand due to its distributor model, with a first-half, second-half dynamic expected for FY '25 [23][24][25][26] Question: Rationale behind the Resourcive acquisition - Resourcive was chosen for its strong leadership team, which aligns with the company's strategy to build a new advisory channel model [28][29] Question: Scalability of recent acquisitions - Both Resourcive and Advantix are scalable, with unique capabilities and management styles that can be expanded [32][33] Question: Hardware portfolio challenges - The company expects growth in its Specialty Technology Solutions segment, while the Comms segment faces challenges, particularly due to Cisco's performance [35][36][37] Question: Capital allocation strategy - The company plans to balance acquisitions and share repurchases, leveraging its strong balance sheet and free cash flow [39][40] Question: M&A market multiples and barcode market outlook - The company sees opportunities in acquiring recurring revenue businesses with higher margins, though multiples remain stable [43][44][45] - The Advantix acquisition is expected to strengthen the company's position in the barcode market as demand recovers [46]