ScanSource forecasts weak Q1, shares down
(Reuters) - Technology products distributor ScanSource Inc (SCSC.O) forecast first-quarter profit well below analysts' estimates, mainly on weak sales in Europe, sending its shares down 10 percent in extended trade.
The forecast mirrors warnings from rivals Avnet Inc (AVT.N) and Ingram Micro (IM.N) as the sector struggles with delayed customer orders indicating slowing technology spending.
Technology distributors are often considered indicators for technology spending as they distribute everything from personal computers to microchips and occupy a central position in the technology supply chain.
ScanSource forecast first-quarter earnings of between 58 cents and 60 cents per share on revenue of between $740 million and $760 million.
Analysts were expecting the company to earn 73 cents per share on revenue of $817.9 billion, according to Thomson Reuters I/B/E/S.
However, the company's fourth-quarter profit beat Wall Street forecasts helped by increased sales in North America.
Excluding items, it earned 68 cents per share.
Revenue in North America rose 5 percent to $570.2 million.
The company posted a total revenue of $754.5 million, up 2.7 percent.
Analysts were expecting earnings of 62 cents per share on a revenue of $779.6 million.
Shares of the company fell to $26.8 in extended trade on Thursday after closing at $29.80 on the Nasdaq.
(Reporting by Shubham Singhal in Bangalore; Editing by Saumyadeb Chakrabarty)
- Six people injured when camera catches fire at 30 Rockefeller Plaza
- Israel holds off on escalating Gaza barrage; West wants truce |
- Russia warns Ukraine after shell crosses border |
- 'Excessive' rubbing of engine blades caused F-35 failure: Pentagon
- Exclusive: YouTube weighs funding efforts to boost premium content - sources