Why ScanSource Stock Was Down This Week
ScanSource (NASDAQ: SCSC) shareholders had a tough week. The stock dropped 11% through Thursday trading compared to a 0.7% slump in the wider market, according to data provided by S&P Global Market Intelligence. The decline pushed the cloud connectivity specialist's gains below the S&P 500's returns so far in 2023, though shares are still up roughly 5% since the start of the year.
This week's slump was sparked by ScanSource's updated earnings and sales outlooks.
The company said in a Tuesday press release that sales rose 17% for the fiscal Q2 selling period that runs through late December. Gross profit margin fell slightly, but operating income was still strong, landing at $39 million and increasing 25% year over year. "The ScanSource team executed exceptionally well," CEO Mike Baur said in an SEC filing.
Source Fool.com
