Sidoti Issues Optimistic Forecast for ScanSource Earnings

Key Points

• Sidoti raised its Q1 2027 EPS estimate for ScanSource to $1.05 from $0.88, while forecasting additional 2027 and 2028 quarterly earnings growth. The broader analyst consensus remains a “Hold” rating with a $43 price target.
• ScanSource’s latest quarterly results significantly exceeded expectations, with EPS of $1.46 versus the $1.14 consensus and revenue of $953.1 million, up 17.3% year over year.
• The company’s outlook is supported by projected fiscal 2027 revenue growth of 6%–10% and its planned $220.5 million acquisition of MicroAge, though analysts and investors continue to weigh integration risks and mixed ratings.

ScanSource, Inc. (NASDAQ:SCSC - Free Report) - Research analysts at Sidoti raised their Q1 2027 earnings estimates for shares of ScanSource in a research note issued to investors on Friday, August 21st. Sidoti analyst G. Burns now forecasts that the industrial products company will earn $1.05 per share for the quarter, up from their previous estimate of $0.88. The consensus estimate for ScanSource's current full-year earnings is $4.30 per share. Sidoti also issued estimates for ScanSource's Q3 2027 earnings at $0.97 EPS, Q4 2027 earnings at $1.58 EPS, Q3 2028 earnings at $1.12 EPS and Q4 2028 earnings at $1.76 EPS.

A number of other research analysts also recently issued reports on the stock. Wall Street Zen upgraded shares of ScanSource from a "hold" rating to a "buy" rating in a research report on Saturday, August 8th. Weiss Ratings raised ScanSource from a "hold (c)" rating to a "hold (c+)" rating in a report on Friday, May 29th. Finally, Northcoast Research downgraded ScanSource from a "buy" rating to a "neutral" rating in a research note on Monday, August 17th. Four analysts have rated the stock with a Hold rating, According to data from MarketBeat.com, the stock currently has a consensus rating of "Hold" and a consensus price target of $43.00.

ScanSource Price Performance

NASDAQ:SCSC opened at $54.35 on Monday. The firm has a market capitalization of $1.09 billion, a P/E ratio of 14.85, a PEG ratio of 0.84 and a beta of 1.28. ScanSource has a 1-year low of $33.76 and a 1-year high of $66.78. The company's fifty day moving average price is $53.14 and its 200-day moving average price is $44.56. The company has a debt-to-equity ratio of 0.11, a current ratio of 1.76 and a quick ratio of 1.15.

ScanSource (NASDAQ:SCSC - Get Free Report) last posted its quarterly earnings results on Thursday, August 20th. The industrial products company reported $1.46 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $1.14 by $0.32. The company had revenue of $953.11 million during the quarter, compared to analyst estimates of $814.35 million. ScanSource had a net margin of 2.44% and a return on equity of 10.10%. ScanSource's revenue for the quarter was up 17.3% compared to the same quarter last year. During the same period last year, the firm posted $1.02 EPS.

Institutional Trading of ScanSource

A number of hedge funds have recently added to or reduced their stakes in the company. Canada Pension Plan Investment Board purchased a new position in ScanSource in the second quarter valued at $25,000. Royal Bank of Canada boosted its stake in shares of ScanSource by 165.0% during the 4th quarter. Royal Bank of Canada now owns 1,876 shares of the industrial products company's stock worth $73,000 after acquiring an additional 1,168 shares in the last quarter. Osaic Holdings Inc. boosted its stake in shares of ScanSource by 400.5% during the 2nd quarter. Osaic Holdings Inc. now owns 2,087 shares of the industrial products company's stock worth $87,000 after acquiring an additional 1,670 shares in the last quarter. Freestone Grove Partners LP acquired a new stake in shares of ScanSource during the 2nd quarter valued at about $119,000. Finally, Mitsubishi UFJ Asset Management Co. Ltd. acquired a new stake in shares of ScanSource during the 2nd quarter valued at about $134,000. 97.91% of the stock is owned by hedge funds and other institutional investors.

Key Stories Impacting ScanSource

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

About ScanSource

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.

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