ScanSource (NASDAQ:SCSC) Stock Falls 9.6% After Earnings Miss

ScanSource, Inc. (NASDAQ:SCSC) fell 9.6% on Friday after the company announced weaker than expected quarterly earnings. The stock traded as low as $41.77 and last traded at $40.7610. Approximately 54,742 shares changed hands during mid-day trading, a decline of 78% from the average daily volume of 245,977 shares. The stock had previously closed at $45.07.

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

Key Headlines Impacting ScanSource

Here are the key news stories impacting ScanSource this week:

• Positive Sentiment: Fiscal 2027 revenue guidance is $3.8 billion to $4.0 billion, above the approximately $3.7 billion analyst consensus, pointing to a stronger sales outlook than expected. Article: ScanSource posts better-than-expected sales and guides for strong full-year sales
• Positive Sentiment: Quarterly revenue rose 30.1% year over year to $962.3 million, beating analysts’ estimate of $860.4 million. Article: ScanSource EPS misses while revenue beats
• Negative Sentiment: Adjusted EPS of $0.86 missed the $1.12 consensus and was below $1.06 a year earlier. The earnings shortfall suggests sales growth is not translating into stronger per-share profits, a key concern for investors. Article: ScanSource misses Q1 earnings estimates
• Negative Sentiment: Shares broke below the 200-day moving average following the disappointing earnings report, a technical signal that may add to near-term selling pressure. Article: ScanSource shares break below the 200-day moving average on disappointing earnings

Wall Street Analyst Weigh In

SCSC has been the topic of a number of research reports. Barclays upped their price target on shares of ScanSource from $43.00 to $51.00 and gave the stock an “equal weight” rating in a research note on Monday, October 12th. Zacks Research downgraded ScanSource from a “strong-buy” rating to a “hold” rating in a 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. Wall Street Zen upgraded shares of ScanSource from a “buy” rating to a “strong-buy” rating in a report on Sunday, October 25th. Finally, Weiss Ratings raised shares of ScanSource from a “hold (c+)” rating to a “buy (b-)” rating in a research note on Thursday, October 8th. One research analyst has rated the stock with a Buy rating and three have assigned a Hold rating to the stock. According to data from MarketBeat.com, the stock presently has an average rating of “Hold” and an average price target of $51.00.

Insider Buying and Selling

In other news, CFO Stephen Jones sold 10,000 shares of the business’s stock in a transaction on Thursday, September 3rd. The shares were sold at an average price of $56.76, for a total value of $567,600.00. Following the completion of the sale, 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 ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, CEO Michael L. Baur sold 57,359 shares of the company’s stock in a transaction on Friday, September 11th. The stock was sold at an average price of $58.04, for a total transaction of $3,329,116.36. Following the sale, the chief executive officer directly owned 200,698 shares of the company’s stock, valued at approximately $11,648,511.92. This represents a 22.23% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. In the last three months, insiders have sold 95,632 shares of company stock worth $5,484,582. 3.18% of the stock is currently owned by company insiders.

Institutional Inflows and Outflows

Several institutional investors have recently bought and sold shares of the company. BlackRock Inc. bought a new stake in ScanSource during the second quarter valued at about $200,140,000. Pzena Investment Management LLC acquired a new stake in shares of ScanSource in the second quarter valued at about $57,807,000. Bank of New York Mellon Corp bought a new position in shares of ScanSource in the second quarter worth about $7,036,000. Empowered Funds LLC bought a new position in shares of ScanSource in the second quarter worth about $5,517,000. Finally, Meeder Asset Management Inc. acquired a new position in shares of ScanSource during the 2nd quarter worth about $4,859,000. Institutional investors own 97.91% of the company’s stock.

ScanSource Stock Down 9.6%

The company has a current ratio of 1.76, a quick ratio of 1.15 and a debt-to-equity ratio of 0.11. The firm has a market cap of $830.22 million, a price-to-earnings ratio of 11.14, a PEG ratio of 0.78 and a beta of 1.28. The firm has a 50-day moving average of $58.51 and a two-hundred day moving average of $48.09.

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.