NASDAQ$SCSC

ScanSource Inc · Q3 2023 earnings

Q3 2023 earnings · · Investor relations

Briefing

ScanSource's third quarter results surpassed expectations, driven by a diversified technology portfolio and a 5% increase in net sales.

ScanSource reported a 4.7% increase in net sales, reaching $885.5 million, and an increase in gross profit by 4.9% to $111.8 million. The company's operating income rose to $34.3 million, and adjusted EBITDA increased by 3.5% to $45.7 million. GAAP net income was $21.2 million, or $0.83 per diluted share, while non-GAAP net income was $24.3 million, or $0.96 per diluted share.

  • Net sales increased by 4.7% year-over-year, totaling $885.5 million.
  • Specialty Technology Solutions net sales increased 12.4% year-over-year, driven by growth in networking, security, and barcoding.
  • Gross profit increased by 4.9% year-over-year to $111.8 million, with a gross profit margin of 12.62%.
  • Adjusted EBITDA increased by 3.5% to $45.7 million, representing 5.16% of net sales.

Headline financials

Total Revenue

$886M

Previous: $846M+4.7%
EPS (adj)

$0.96

Previous: $1.04-7.7%
Gross Profit Margin

12.6%

Previous: 12.6%+0.2%
Adjusted EBITDA

$45.7M

Previous: $44.1M+3.5%
Adjusted EBITDA Margin

5.2%

Previous: 5.2%-1.0%
Free Cash Flow

$21.2M

Previous: $23.5M-9.8%
Net Income

$21.2M

Previous: $23.5M-9.8%
Operating Income

$34.3M

Previous: $32.9M+4.1%
Gross Profit

$112M

Previous: $107M+4.9%
Cash & Equivalents

$37.4M

Previous: $43.5M-14.2%
Total Assets

$1.98B

Previous: $1.84B+7.6%
Stock-Based Comp

$2.95M

Previous: $2.76M+7.0%

Revenue & EPS history

ScanSource · Revenue · Quarterly

$886M

Q3 2023+4.7%vs Q3 2022
Beat estimate in 6 of 13 quarters(46%)
ActualEstimate

Revenue by segment

ScanSource · $566M total across 1 segment · Q3 2023

  • Specialty Technology Solutions
    $566M+12.4%

Forward guidance

ScanSource raises its expectation for adjusted EBITDA for the full fiscal year ended June 30, 2023 and replaces previously provided guidance.

Tailwinds

  • Net sales growth, year-over-year at least 6.5%.
  • Adjusted EBITDA (non-GAAP) at least $182 million.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q3 2023

Historical avgQ3 2023

-1.2%

Avg return

Earnings day

-1.4%

Avg return

5 days after

+0.2%

Avg return

30 days after

55%

37 / 67 earnings

Positive

+21.7%

Q4 2021

Best reaction

-19.0%

Q3 2020

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q3 2026+5.9%+6.2%+14.2%
Q2 2026-18.0%-17.2%-18.4%
Q1 2026-1.5%-2.9%-2.2%
Q3 2025+7.1%+16.4%+14.9%
Q2 2025-14.8%-19.8%-26.8%
Q1 2025+3.0%+0.8%+3.6%
Q4 2024+6.1%+4.2%-1.6%
Q3 2024+5.8%+7.5%+5.6%
Q2 2024-3.2%+2.9%+13.8%
Q1 2024-3.0%+4.8%+18.0%
Q4 2023+12.0%+11.0%+7.1%
Q3 2023+6.1%+8.3%+16.3%
Q2 2023-11.4%-9.7%-13.0%
Q1 2023-6.9%-2.1%-5.1%
Q4 2022-15.7%-14.9%-19.6%
Q3 2022+2.0%+8.9%+8.1%
Q2 2022+3.9%-1.8%+3.5%
Q1 2022-11.4%-8.3%-14.8%
Q4 2021+21.7%+23.9%+27.2%
Q3 2021-7.6%-4.6%-5.9%
Q2 2021+12.6%+13.5%+15.4%
Q1 2021+18.0%+9.0%+22.3%
Q4 2020-13.2%-17.0%-19.6%
Q3 2020-19.0%-19.3%-1.5%
Q2 2020-9.1%-15.3%-25.9%
Q1 2020+2.2%+3.8%+12.7%
Q4 2019-5.3%-6.3%-5.4%
Q3 2019-10.2%-14.2%-15.1%
Q2 2019+0.4%-1.6%-4.0%
Q1 2019-1.0%-0.4%-9.7%
Q4 2018-11.3%-4.2%-5.8%
Q3 2018+2.4%+3.7%+14.5%
Q2 2018+6.1%-0.9%+4.7%
Q1 2018-8.4%-11.5%-16.3%
Q4 2017+0.8%-0.8%+17.4%
Q3 2017-2.5%-4.5%-2.2%
Q2 2017+8.6%+8.9%+0.2%
Q1 2017-12.8%+3.6%+13.7%
Q4 2016-15.9%-15.2%-13.7%
Q3 2016+1.4%
Q2 2016+20.3%
Q1 2016-13.6%
Q4 2015-5.1%
Q3 2015-4.4%
Q2 2015-11.9%
Q1 2015+4.4%
Q4 2014+0.6%
Q3 2014+4.0%
Q2 2014-5.2%
Q1 2014+5.2%
Q4 2013-4.6%
Q3 2013+0.3%
Q2 2013-13.2%
Q1 2013+1.3%
Q4 2012+0.8%
Q3 2012-1.2%
Q2 2012+0.5%
Q1 2012-3.2%
Q4 2011+4.3%
Q4 2009+4.3%
Q3 2010+0.5%
Q3 2011+0.5%
Q2 2011+1.3%
Q2 2010+1.3%
Q1 2010+2.5%
Q1 2011+2.5%
Q4 2010+2.5%

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