ScanSource (NASDAQ:SCSC) Stock Breaks Below Two Hundred Day Moving Average After Earnings Miss

Key Points

• ScanSource reported fiscal first-quarter EPS of $0.86, below analysts’ $1.12 estimate and down from $1.06 a year earlier.
• Revenue climbed 30.1% year over year to $962.29 million, topping estimates, and the company forecast fiscal 2027 revenue of $3.8 billion to $4.0 billion—above consensus.
• Following the earnings report, shares fell below the 200-day moving average of $48.09 and traded as low as $45.00.

ScanSource, Inc. (NASDAQ:SCSC - Get Free Report) shares crossed below its 200-day moving average during trading on Thursday following a weaker than expected earnings announcement. The stock has a 200-day moving average of $48.09 and traded as low as $45.00. ScanSource shares last traded at $45.07, with a volume of 718,787 shares trading hands.

The industrial products company reported $0.86 EPS for the quarter, missing analysts' consensus estimates of $1.12 by ($0.26). ScanSource had a return on equity of 10.10% and a net margin of 2.44%. The company had revenue of $962.29 million during the quarter, compared to analyst estimates of $860.35 million. During the same quarter in the previous year, the business posted $1.06 earnings per share. The company's revenue for the quarter was up 30.1% compared to the same quarter last year.

Key Headlines Impacting ScanSource

Here are the key news stories impacting ScanSource this week:

• Positive Sentiment: Fiscal first-quarter revenue rose 30.1% year over year to $962.29 million, exceeding analysts’ $860.35 million estimate. MarketBeat earnings report
• Positive Sentiment: ScanSource forecast fiscal 2027 revenue of $3.8 billion to $4.0 billion, above the $3.7 billion consensus estimate, signaling expectations for continued sales growth. MSN article on sales and guidance
• Negative Sentiment: Adjusted earnings of $0.86 per share missed the $1.12 consensus estimate and were below $1.06 a year earlier. The profit shortfall likely outweighed the strong revenue and guidance news for investors. Zacks earnings article

Wall Street Analysts Forecast Growth

SCSC has been the subject of a number of analyst reports. Zacks Research cut shares of ScanSource from a "strong-buy" rating to a "hold" rating in a report on Tuesday, October 20th. Barclays upped their target price on shares of ScanSource from $43.00 to $51.00 and gave the stock an "equal weight" rating in a report on Monday, October 12th. Northcoast Research lowered shares of ScanSource from a "buy" rating to a "neutral" rating in a report on Monday, August 17th. Wall Street Zen raised shares of ScanSource from a "buy" rating to a "strong-buy" rating in a research report on Sunday, October 25th. Finally, Weiss Ratings upgraded ScanSource from a "hold (c+)" rating to a "buy (b-)" rating in a research note on Thursday, October 8th. One investment analyst has rated the stock with a Buy rating and three have assigned a Hold rating to the company's stock. According to MarketBeat, ScanSource has a consensus rating of "Hold" and an average price target of $51.00.

Insider Transactions at ScanSource

In other ScanSource news, Director Charles Mathis sold 3,000 shares of the business's stock in a transaction on Friday, September 11th. The stock was sold at an average price of $58.00, for a total value of $174,000.00. Following the sale, the director directly owned 25,027 shares in the company, valued at $1,451,566. The trade was a 10.70% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available through the SEC website. Also, CAO Brandy Ford sold 5,293 shares of the company's stock in a transaction on Friday, September 4th. The shares were sold at an average price of $57.43, for a total value of $303,976.99. Following the transaction, the chief accounting officer directly owned 9,907 shares in the company, valued at $568,959.01. This represents a 34.82% decrease in their position. The disclosure for this sale is available in the SEC filing. Over the last ninety days, insiders sold 95,632 shares of company stock valued at $5,484,582. Corporate insiders own 3.18% of the company's stock.

Institutional Investors Weigh In On ScanSource

Institutional investors have recently added to or reduced their stakes in the business. BlackRock Inc. bought a new position in ScanSource in the 2nd quarter worth about $200,140,000. Pzena Investment Management LLC purchased a new stake in shares of ScanSource in the 2nd quarter valued at about $57,807,000. Bank of New York Mellon Corp purchased a new stake in shares of ScanSource in the 2nd quarter valued at about $7,036,000. Empowered Funds LLC bought a new stake in shares of ScanSource during the 2nd quarter valued at about $5,517,000. Finally, Meeder Asset Management Inc. bought a new stake in shares of ScanSource during the 2nd quarter valued at about $4,859,000. 97.91% of the stock is owned by hedge funds and other institutional investors.

ScanSource Trading Down 20.9%

The company has a debt-to-equity ratio of 0.11, a quick ratio of 1.15 and a current ratio of 1.76. The stock has a market cap of $918.08 million, a P/E ratio of 12.31, a P/E/G ratio of 0.78 and a beta of 1.28. The stock has a 50-day moving average price of $58.51 and a 200-day moving average price of $48.09.

About ScanSource

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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