Why ScanSource (SCSC) Stock Is Declining Today

NEW YORK (TheStreet) -- Shares of ScanSource Inc. (SCSC) are lower by -2.60% to $38.24 on Friday morning, after the company guided lower than expected fiscal 2015 first quarter earnings.

The wholesale distributor of specialty technology products said it's expecting earnings per diluted share to be between 59 cents and 61 cents, on revenue ranging from $750 million to $770 million.

Analysts polled by Thomson Reuters are expecting ScanSource to report EPS of 66 cents and $756.99 million in revenue. 
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However, the company reported fourth quarter 2014 net income of $27.1 million, or 94 cents per share, compared to a net loss of -$13.32 million, or 48 cents per share for the 2013 fourth quarter.

Net sales grew 6.4% to $758.1 million versus $712.6 million for the same period last year.

TheStreet Ratings team rates SCANSOURCE INC as a Hold with a ratings score of C+. TheStreet Ratings Team has this to say about their recommendation:

"We rate SCANSOURCE INC (SCSC) a HOLD. The primary factors that have impacted our rating are mixed some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its increase in net income, largely solid financial position with reasonable debt levels by most measures and growth in earnings per share. However, as a counter to these strengths, we also find weaknesses including disappointing return on equity, weak operating cash flow and relatively poor performance when compared with the S&P 500 during the past year."

You can view the full analysis from the report here: SCSC Ratings Report

SCSC Chart SCSC data by YCharts

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