ScanSource Stock Earnings Estimates Increased by Sidoti

Key Points

• Sidoti raised its Q2 2027 EPS estimate for ScanSource to $1.31 from $1.29. The firm projects FY2027 EPS of $4.71 and FY2028 EPS of $5.53.
• ScanSource’s latest quarter brought revenue of $962.3 million, up 30.1% year over year and above estimates, but EPS of $0.86 missed the $1.12 consensus and fell from $1.06 a year earlier.
• Analyst sentiment remains cautious: ScanSource has an average “Hold” rating and a $51 consensus price target. Recent analyst actions were mixed, including upgrades and downgrades.

ScanSource, Inc. (NASDAQ:SCSC - Free Report) - Sidoti upped their Q2 2027 earnings per share estimates for shares of ScanSource in a report released on Friday, November 6th. Sidoti analyst G. Burns now expects that the industrial products company will post earnings per share of $1.31 for the quarter, up from their previous estimate of $1.29. The consensus estimate for ScanSource's current full-year earnings is $4.71 per share. Sidoti also issued estimates for ScanSource's Q3 2027 earnings at $1.01 EPS, Q4 2027 earnings at $1.52 EPS, FY2027 earnings at $4.71 EPS, Q1 2028 earnings at $1.29 EPS, Q2 2028 earnings at $1.49 EPS, Q3 2028 earnings at $1.14 EPS, Q4 2028 earnings at $1.61 EPS and FY2028 earnings at $5.53 EPS.

Other equities research analysts also recently issued research reports about the stock. Zacks Research downgraded shares of ScanSource from a "strong-buy" rating to a "hold" rating in a research report on Tuesday, October 20th. Northcoast Research lowered shares of ScanSource from a "buy" rating to a "neutral" rating in a research note on Monday, August 17th. Weiss Ratings raised ScanSource from a "hold (c+)" rating to a "buy (b-)" rating in a report on Thursday, October 8th. Barclays raised their price target on ScanSource from $43.00 to $51.00 and gave the stock an "equal weight" rating in a research note on Monday, October 12th. Finally, Wall Street Zen lowered ScanSource from a "strong-buy" rating to a "buy" rating in a report on Saturday. One investment analyst has rated the stock with a Buy rating and three have assigned a Hold rating to the company. According to data from MarketBeat.com, ScanSource presently has an average rating of "Hold" and a consensus target price of $51.00.

ScanSource Price Performance

Shares of ScanSource stock opened at $42.78 on Monday. The company has a market cap of $871.43 million, a price-to-earnings ratio of 13.41, a price-to-earnings-growth ratio of 0.61 and a beta of 1.28. The company's 50 day moving average is $58.21 and its 200 day moving average is $48.11. ScanSource has a twelve month low of $33.76 and a twelve month high of $66.78. The company has a quick ratio of 1.13, a current ratio of 1.75 and a debt-to-equity ratio of 0.36.

ScanSource (NASDAQ:SCSC - Get Free Report) last posted its earnings results on Thursday, November 5th. The industrial products company reported $0.86 earnings per share (EPS) for the quarter, missing the consensus estimate of $1.12 by ($0.26). The company had revenue of $962.29 million for the quarter, compared to the consensus estimate of $860.35 million. ScanSource had a net margin of 1.96% and a return on equity of 9.44%. ScanSource's revenue was up 30.1% on a year-over-year basis. During the same quarter in the prior year, the company posted $1.06 EPS.

Institutional Trading of ScanSource

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in SCSC. Maryland State Retirement & Pension System purchased a new position in shares of ScanSource during the 3rd quarter worth $261,000. Fulcrum Asset Management LLP grew its position in shares of ScanSource by 6,672.0% during the 3rd quarter. Fulcrum Asset Management LLP now owns 3,386 shares of the industrial products company's stock valued at $196,000 after acquiring an additional 3,336 shares during the period. Ethic Inc. bought a new stake in shares of ScanSource during the 3rd quarter valued at $285,000. Pictet Asset Management Holding SA bought a new stake in shares of ScanSource during the 3rd quarter valued at $222,000. Finally, CenterBook Partners LP increased its stake in shares of ScanSource by 56.9% in the 3rd quarter. CenterBook Partners LP now owns 14,917 shares of the industrial products company's stock worth $876,000 after purchasing an additional 5,412 shares in the last quarter. 97.91% of the stock is owned by hedge funds and other institutional investors.

Insider Buying and Selling at ScanSource

In other news, CEO Michael Baur sold 57,359 shares of the stock in a transaction that occurred on Friday, September 11th. The shares were sold at an average price of $58.04, for a total value of $3,329,116.36. Following the transaction, the chief executive officer owned 200,698 shares in the company, valued at $11,648,511.92. This represents a 22.23% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. Also, CFO Stephen Jones sold 10,000 shares of the firm's stock in a transaction that occurred on Thursday, September 3rd. The stock was sold at an average price of $56.76, for a total transaction of $567,600.00. Following the completion of the transaction, the chief financial officer directly owned 87,421 shares in the company, valued at approximately $4,962,015.96. The trade was a 10.26% decrease in their position. The SEC filing for this sale provides additional information. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Insiders sold 95,632 shares of company stock worth $5,484,582 over the last 90 days. 3.20% of the stock is owned by company insiders.

Key ScanSource News

Here are the key news stories impacting ScanSource this week:

• Positive Sentiment: Fiscal Q1 revenue rose 30.1% year over year to $962.3 million, topping analysts’ $860.4 million estimate. ScanSource also forecast fiscal 2027 revenue of $3.8 billion to $4.0 billion, above the roughly $3.7 billion consensus. Article: ScanSource posts better-than-expected sales and guides for strong full-year sales
• Negative Sentiment: Adjusted EPS was $0.86, missing the $1.12 consensus and down from $1.06 a year earlier. The earnings miss suggests the strong sales growth has not translated into comparable per-share earnings. Article: ScanSource shares fall after lower fiscal Q1 non-GAAP earnings miss estimates
• Negative Sentiment: Shares fell below their 200-day moving average following the disappointing results, a technical signal that may add to near-term selling pressure. Article: ScanSource shares break below 200-day moving average on disappointing earnings

ScanSource Company Profile

ScanSource, Inc NASDAQ: SCSC is a technology distributor that connects manufacturers of business technology products with value-added resellers, systems integrators and other channel partners. The company provides products, services and expertise intended to help partners design, deploy and support technology solutions for business customers.

ScanSource's offerings include point-of-sale and payment technology, barcode scanners, mobile computing devices, networking equipment, cybersecurity products, communications systems and cloud-based services.

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