ScanSource Q4 Sales Surge 17%, EPS Beats by 28% on Hardware Demand
SCSC sits 75% above its 52-week low of $33.76.
Summary
ScanSource delivered a strong Q4: net sales jumped 17% year-over-year to $953.11M, well above the $802.06M consensus, and adjusted EPS of $1.46 crushed the $1.14 estimate. The beat was driven by robust hardware demand, especially in North America, and a 13.5% increase in recurring revenue. Management also issued FY27 guidance calling for 6-10% net sales growth (excluding the MicroAge acquisition) and adjusted EBITDA of $158-165M, with free cash flow of at least $85M. This follows the company's announcement earlier today of a $220.5M cash acquisition of MicroAge, which expands its IT solutions capabilities. The stock is trading near its 52-week high, and the earnings beat plus solid guidance reinforce the positive momentum.
At the time of this announcement, SCSC was trading at $59.00 on NASDAQ in the Technology sector, with a market capitalization of approximately $1B. The 52-week trading range was $33.76 to $59.60. This news item was assessed with positive market sentiment and an importance score of 8 out of 10. Source: Reuters.