ScanSource (NASDAQ:SCSC) Announces Earnings Results

ScanSource (NASDAQ:SCSC) released its earnings results on Thursday. The industrial products company reported $1.46 EPS for the quarter, beating the consensus estimate of $1.14 by $0.32, FiscalAI reports. The company had revenue of $953.11 million during the quarter, compared to analysts’ expectations of $814.35 million. ScanSource had a return on equity of 10.10% and a net margin of 2.44%.The business’s revenue for the quarter was up 17.3% on a year-over-year basis. During the same period last year, the firm earned $1.02 EPS.

Here are the key takeaways from ScanSource’s conference call:

• Strong Q4 performance: Net sales rose 17% year over year, while non-GAAP EPS increased 43% to a record $1.46. Growth was broad-based across technologies, supported by renewed demand and the return of large deals.
• Healthy outlook for FY2027: ScanSource expects organic revenue growth of 6%–10%, adjusted EBITDA of $158 million–$165 million, and at least $85 million in free cash flow, excluding the planned MicroAge acquisition.
• MicroAge acquisition expands growth opportunities: The deal is expected to close by the end of Q1 and would broaden ScanSource’s addressable market in cloud, cybersecurity, data centers, and AI while adding services capabilities and end-user visibility.
• Some execution and supply risks remain: Juniper sales may ramp slowly because of vendor supply constraints, while Brazil’s weak demand required headcount reductions despite continued profitability. FY2027 will also face tougher year-over-year comparisons in the second half.

ScanSource Price Performance

SCSC opened at $54.35 on Friday. The company has a fifty day moving average price of $53.14 and a two-hundred day moving average price of $44.55. The company has a debt-to-equity ratio of 0.11, a quick ratio of 1.20 and a current ratio of 1.76. ScanSource has a 52 week low of $33.76 and a 52 week high of $66.78. The firm has a market capitalization of $1.10 billion, a PE ratio of 14.85, a P/E/G ratio of 0.88 and a beta of 1.28.

Institutional Inflows and Outflows

A number of large investors have recently made changes to their positions in SCSC. Wasatch Advisors LP grew its stake in shares of ScanSource by 34.9% during the third quarter. Wasatch Advisors LP now owns 1,139,573 shares of the industrial products company’s stock worth $50,130,000 after purchasing an additional 294,624 shares during the period. Invesco Ltd. lifted its stake in ScanSource by 56.5% in the fourth quarter. Invesco Ltd. now owns 439,442 shares of the industrial products company’s stock valued at $17,165,000 after buying an additional 158,722 shares during the period. Jacobs Levy Equity Management Inc. lifted its stake in ScanSource by 65.6% in the third quarter. Jacobs Levy Equity Management Inc. now owns 389,915 shares of the industrial products company’s stock valued at $17,152,000 after buying an additional 154,518 shares during the period. Jane Street Group LLC lifted its stake in ScanSource by 148.3% in the first quarter. Jane Street Group LLC now owns 199,799 shares of the industrial products company’s stock valued at $6,795,000 after buying an additional 119,317 shares during the period. Finally, Arrowstreet Capital Limited Partnership boosted its holdings in ScanSource by 1,177.0% during the third quarter. Arrowstreet Capital Limited Partnership now owns 120,200 shares of the industrial products company’s stock worth $5,288,000 after buying an additional 110,787 shares during the last quarter. Institutional investors and hedge funds own 97.91% of the company’s stock.

More ScanSource News

Here are the key news stories impacting ScanSource this week:

• Positive Sentiment: Quarterly results exceeded expectations. ScanSource reported fourth-quarter revenue of $953.1 million, up 17.3% year over year and well above the approximately $814 million consensus estimate. Adjusted EPS was $1.46 versus analysts’ $1.14 expectation, while GAAP diluted EPS rose to $1.24 from $0.88 a year earlier. ScanSource Q4 Earnings and Revenues Top Estimates
• Positive Sentiment: MicroAge acquisition expands growth opportunities. ScanSource agreed to acquire Canadian IT solutions integrator MicroAge for $220.5 million in cash. The transaction is intended to strengthen its cloud, cybersecurity and managed IT capabilities, with closing expected by September 30, subject to approvals. ScanSource to Acquire MicroAge in $220.5 Million Deal
• Positive Sentiment: Fiscal 2027 outlook topped revenue expectations. Management projects 6%–10% revenue growth, implying approximately $3.4 billion–$3.5 billion in sales versus consensus near $3.2 billion. It also expects adjusted EBITDA of $158 million–$165 million and at least $85 million of free cash flow, supporting the investment case if execution remains strong. ScanSource Outlines FY 2027 Revenue Growth
• Neutral Sentiment: Investors are weighing integration risk. The acquisition could broaden ScanSource’s addressable market, but its benefits depend on completing the deal and integrating MicroAge while maintaining margins and free-cash-flow targets. The stock’s pullback after its earlier surge may reflect profit-taking and caution after the strong announcement-driven advance.
• Negative Sentiment: Recent insider activity provides a modest overhang. CEO Michael Baur reportedly sold 25,000 shares over the past six months, with no insider purchases reported during that period. These sales are not necessarily tied to the latest results but may temper sentiment at elevated valuation levels. ScanSource Stock Opinions on Strong Earnings and MicroAge Acquisition

Analyst Upgrades and Downgrades

SCSC has been the topic of several recent research reports. Northcoast Research cut ScanSource from a “buy” rating to a “neutral” rating in a report on Monday, August 17th. Wall Street Zen upgraded ScanSource from a “hold” rating to a “buy” rating in a research report on Saturday, August 8th. Finally, Weiss Ratings raised ScanSource from a “hold (c)” rating to a “hold (c+)” rating in a report on Friday, May 29th. Four research analysts have rated the stock with a Hold rating, According to MarketBeat.com, the stock has a consensus rating of “Hold” and a consensus target price of $43.00.

ScanSource Company Profile

ScanSource, Inc is a global provider of technology products and solutions designed to help businesses enhance operational efficiency and customer engagement. The company specializes in the distribution of point-of-sale (POS) systems, barcode and data capture devices, networking and communications equipment, and value-added software and cloud services. By combining hardware, software and professional services, ScanSource supports channel partners in delivering end-to-end solutions across multiple industries, including retail, hospitality, healthcare and logistics.

Founded in 1992 and headquartered in Greenville, South Carolina, ScanSource has built a broad international footprint, serving customers throughout North, Central and South America as well as Europe, the Middle East and Africa.