GREENVILLE, S.C. – ScanSource , Inc. (NASDAQ: NASDAQ:) reported fourth quarter earnings that fell short of analyst expectations, sending shares down 5.9% in after-hours trading on Monday.
The hybrid distributor of technology products posted adjusted earnings per share of $0.80 for the quarter ended June 30, missing the consensus estimate of $0.92. Revenue came in at $746.1 million, well below analyst projections of $818.8 million and down 21.2% YoY.
ScanSource’s results reflected a challenging demand environment, with net sales in its Specialty Technology Solutions segment decreasing 13.7% YoY to $484.7 million. The Modern Communications & Cloud segment saw an even steeper 32.2% YoY decline to $261.4 million.
“Our results for the year reflect a soft demand environment; however, we delivered strong margins and robust cash flow,” said Mike Baur, Chair and CEO of ScanSource.
Looking ahead, the company provided disappointing guidance for fiscal year 2025, projecting revenue of $3.1 billion to $3.5 billion. This outlook falls short of the $3.36 billion consensus estimate.
Despite the weak top-line performance, ScanSource highlighted its strong cash flow generation, reporting operating cash flow of $371.6 million for fiscal year 2024. The company also noted it is executing on its capital allocation strategy, including recent acquisitions of Resourcive and Advantix.
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