ScanSource Shares Climb on 4Q Gains, MicroAge Acquisition

Dow Jones
08/20
 
 

Shares of ScanSource jumped after the company beat Wall Street estimates for its latest completed quarter and said it would acquire the solutions integrator MicroAge.

The stock rose 24% to $63.82 after the opening bell. Shares are now up 66% year-to-date.

The electronics distributor on Thursday said before the market opened that it posted a higher net profit in the fiscal fourth quarter and adjusted earnings of $1.46 a share, well ahead of analyst projections for $1.14 a share consensus estimate of analysts polled by FactSet.

The bottom line was lifted by a 17% jump in revenue to $953.1 million, topping analyst forecasts for $814.4 million.

Along with the strong results, ScanSource on Thursday unveiled an agreement to buy IT solutions integrator MicroAge for $220.5 million in cash.

The acquisition is expected to close before Sept. 30 and be accretive to adjusted earnings within its first year.

 
 

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