ScanSource Inc (NASDAQ:SCSC)
ScanSource, Inc. (SCSC), a global wholesale distributor of specialty technology company yesterday reported their fiscal fourth quarter 2017 financial results. ScanSource reported fourth quarter profits of $19 million.
ScanSource reported adjusted fourth quarter earnings of $0.68 per share which was exactly what analysts were expecting. ScanSource reported fourth quarter revenues of $917.3 million which beat analyst expectations of $894.5 million.
ScanSource, Inc. CEO’s Comments
“We delivered a strong finish to the year with 5% sales growth for the quarter and operating results within our expected range,” said Mike Baur, CEO, ScanSource, Inc. “This progress reflects execution of our plan to grow organically and through acquisitions.” Business Wire
SCSC Technical Analysis
SCSC opened trading yesterday at $37.55 which was down from the previous day’s trading close of $37.65. SCSC closed trading yesterday at $39.00 and spiked down after market to $37.55, equivalent to a 4% decrease from the closing price.
Taking a look at the daily chart we can see that before the spike down SCSC had already been in an overall downward trend dating back to July 20th when it traded at $41.60. SCSC has a float of 25.16 million shares and traded 1.75 times the normal daily trading volume on Tuesday.
For trading purposes, I would like to see SCSC open trading on Wednesday below $38.00 and if it does I would be looking to take a short position at the bell. My stop loss would be $0.20 from my entry position fearing anything more than that and the stock would start to fill in the gap down.
Company Profile
ScanSource, Inc. operates as a wholesale distributor of specialty technology products in North America and internationally. It operates in two segments, Worldwide Barcode & Security and Worldwide Communications & Services. The Worldwide Barcode & Security segment focuses on automatic identification and data capture (AIDC), point-of-sale (POS), networking, and electronic physical security technologies.
Its AIDC and POS products are used to automate the collection, processing, and communication of information for commercial and industrial applications, such as retail sales, distribution, shipping, inventory control, materials handling, warehouse management, and health care applications; electronic physical security products, including identification, access control, video surveillance, intrusion-related, wireless, and networking infrastructure products; and 3D printing solutions to replace and complement traditional methods, as well as reduce the time and cost of designing new products.
The Worldwide Communications & Services segment focuses on communications technologies and services. It provides voice and data products, such as private branch exchanges (PBX), key systems, and telephone handsets and components that are used in voice, fax, data, voice recognition, call center management, and IP communication applications; converged communication products, such as telephone and IP network interfaces, voice over Internet protocol systems, PBX integration products, and carrier-class board systems-level products; and video products comprising video and voice conferencing, and network systems.
This segment also offers data networking products that include switches, servers, and routers; and provides value-added support programs and services, such as education and training, customer configuration, marketing services, network assessments, WiFi services, and partnership programs. ScanSource, Inc. was founded in 1992 and is headquartered in Greenville, South Carolina.