ScanSource , Inc. (NASDAQ:SCSC) has reached an impressive milestone, with its stock price hitting an all-time high of $53.81. The technology distributor, now valued at $1.28 billion, maintains a healthy financial position with a "GOOD" rating according to InvestingPro's comprehensive analysis. This peak reflects a significant surge in the company's market performance, marking a 41.8% increase over the past year. Investors have shown growing confidence in ScanSource's business model and future prospects, as evidenced by the stock's robust one-year change and impressive YTD return of 30.32%. The achievement of this all-time high serves as a testament to the company's strong financial health, demonstrated by its solid current ratio of 2.03 and reasonable P/E ratio of 16.63, and the positive sentiment surrounding its growth trajectory in the competitive technology landscape. InvestingPro subscribers can access 12 additional key insights and a comprehensive Pro Research Report for deeper analysis of SCSC's potential.
In other recent news, ScanSource Inc. has been making significant strides. The company's shareholders approved a new 2024 Omnibus Incentive Compensation Plan, replacing the previous 2021 plan, and re-elected eight directors to the board. The new incentive plan, designed to benefit employees, officers, consultants, and non-employee directors, allows for various award types and has set a maximum of over 2 million shares of common stock available for awards.
On the financial front, despite an 11.5% year-over-year decline in consolidated sales, ScanSource reported a strong Q1 performance, marked by an increase in earnings per share and free cash flow. The company's strategic focus on a hybrid distribution strategy and recent acquisitions, such as Resourcive and Advantix, aimed at enhancing recurring revenue streams, were highlighted.
For fiscal year 2025, the company reaffirmed its guidance, projecting net sales to range between $3.1 billion and $3.5 billion. Adjusted EBITDA is expected to be between $140 million to $160 million, with a free cash flow of at least $70 million. Despite the decrease in sales, ScanSource managed to increase non-GAAP net income and diluted EPS by 11% and 14% respectively, ending Q1 with a net debt leverage ratio of zero. However, the company anticipates soft demand with Intelisys reporting only a 6% net bookings growth. These are among the recent developments for ScanSource.
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