ScanSource (NASDAQ:SCSC) Posts Quarterly Earnings Results, Beats Expectations By $0.15 EPS

ScanSource (NASDAQ:SCSC) announced its quarterly earnings results on Thursday. The industrial products company reported $1.06 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.91 by $0.15, Briefing.com reports. The firm had revenue of $739.65 million during the quarter, compared to the consensus estimate of $787.37 million. ScanSource had a return on equity of 9.38% and a net margin of 2.35%.The firm’s quarterly revenue was down 4.6% compared to the same quarter last year. During the same period in the prior year, the firm earned $0.84 EPS. ScanSource updated its FY 2026 guidance to EPS.

ScanSource Stock Performance

SCSC traded down $0.59 during trading hours on Friday, hitting $40.60. 216,088 shares of the stock were exchanged, compared to its average volume of 236,629. The stock has a market cap of $895.92 million, a price-to-earnings ratio of 13.49, a price-to-earnings-growth ratio of 0.71 and a beta of 1.37. The stock has a 50-day simple moving average of $43.10 and a 200-day simple moving average of $41.29. The company has a debt-to-equity ratio of 0.14, a current ratio of 2.01 and a quick ratio of 1.30. ScanSource has a 12 month low of $28.75 and a 12 month high of $53.90.

Analysts Set New Price Targets

A number of analysts have recently issued reports on the stock. Zacks Research lowered shares of ScanSource from a “strong-buy” rating to a “hold” rating in a research note on Tuesday, October 21st. Wall Street Zen downgraded shares of ScanSource from a “strong-buy” rating to a “buy” rating in a research note on Saturday, October 11th. Weiss Ratings reissued a “hold (c+)” rating on shares of ScanSource in a research report on Wednesday, October 8th. Finally, Barclays began coverage on ScanSource in a research report on Tuesday, October 7th. They set an “equal weight” rating and a $43.00 target price on the stock. One research analyst has rated the stock with a Buy rating and three have assigned a Hold rating to the stock. According to MarketBeat.com, ScanSource presently has an average rating of “Hold” and a consensus price target of $42.50.

Insiders Place Their Bets

In other news, CEO Michael L. Baur sold 47,969 shares of the firm’s stock in a transaction dated Thursday, September 18th. The shares were sold at an average price of $44.34, for a total value of $2,126,945.46. Following the transaction, the chief executive officer directly owned 202,512 shares in the company, valued at approximately $8,979,382.08. This trade represents a 19.15% decrease in their position. The transaction was disclosed in a filing with the SEC, which can be accessed through the SEC website. Also, EVP Rachel Hayden sold 752 shares of ScanSource stock in a transaction dated Wednesday, September 3rd. The shares were sold at an average price of $43.57, for a total transaction of $32,764.64. Following the completion of the transaction, the executive vice president directly owned 14,918 shares of the company’s stock, valued at $649,977.26. This trade represents a 4.80% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders have sold 153,677 shares of company stock worth $6,876,030 over the last three months. 3.18% of the stock is owned by corporate insiders.

Institutional Trading of ScanSource

Hedge funds have recently made changes to their positions in the stock. Canada Pension Plan Investment Board bought a new position in ScanSource during the 2nd quarter worth $25,000. Osaic Holdings Inc. grew its position in shares of ScanSource by 400.5% during the second 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 during the last quarter. Tower Research Capital LLC TRC increased its stake in shares of ScanSource by 672.0% in the second quarter. Tower Research Capital LLC TRC now owns 4,632 shares of the industrial products company’s stock valued at $194,000 after purchasing an additional 4,032 shares during the period. AXA S.A. bought a new stake in ScanSource during the 2nd quarter valued at $246,000. Finally, Arrowstreet Capital Limited Partnership acquired a new position in ScanSource during the 2nd quarter worth $394,000. Institutional investors own 97.91% of the company’s stock.

About ScanSource

ScanSource, Inc engages in the distribution of technology products and solutions in the United States, Canada, and Brazil. It operates through two segments, Specialty Technology Solutions and Modern Communications & Cloud. The Specialty Technology Solutions segment provides a portfolio of solutions primarily for enterprise mobile computing, data capture, barcode printing, point of sale (POS), payments, networking, electronic physical security, cyber security, and other technologies.