ScanSource (NASDAQ:SCSC) Shares Gap Down on Disappointing Earnings

Shares of ScanSource, Inc. (NASDAQ:SCSC) gapped down prior to trading on Thursday following a dissappointing earnings announcement. The stock had previously closed at $44.33, but opened at $36.94. ScanSource shares last traded at $37.68, with a volume of 81,143 shares changing hands.

The industrial products company reported $0.80 EPS for the quarter, missing the consensus estimate of $1.00 by ($0.20). The firm had revenue of $766.51 million during the quarter, compared to analyst estimates of $782.46 million. ScanSource had a return on equity of 9.35% and a net margin of 2.44%.The business’s quarterly revenue was up 2.5% compared to the same quarter last year. During the same quarter in the previous year, the business earned $0.85 earnings per share.

Key Stories Impacting ScanSource

Here are the key news stories impacting ScanSource this week:

• Positive Sentiment: Management launched a dedicated unified‑communications go‑to‑market team and emphasized strategic initiatives intended to drive future growth — a potential catalyst for higher‑margin sales and deal conversion over time. Article Title
• Positive Sentiment: Board/governance refresh announced alongside results — typically viewed positively by investors focused on execution and oversight. Article Title
• Neutral Sentiment: Company characterized Q2 as steady/modest growth (revenue +2.5% YoY), and management framed the quarter in the context of strategic investments and pipeline development. Conference call transcripts provide more color on execution plans. Article Title
• Negative Sentiment: Q2 EPS of $0.80 missed consensus ($1.00) and declined from $0.85 a year ago — a clear near‑term disappointment for earnings‑focused investors. Article Title
• Negative Sentiment: Revenue of $766.5M missed estimates (~$782.5M), and management trimmed FY26 revenue guidance to $3.0B–$3.1B (below Street ~ $3.2B), citing softer large‑deal activity — the primary driver of downward pressure on the stock. Article Title
• Negative Sentiment: Multiple outlets note the company “missed” quarterly revenue/earnings expectations, which explains headline weakness and intraday selling pressure before the rebound. Article Title

Wall Street Analyst Weigh In

A number of analysts have recently issued reports on the company. Weiss Ratings restated a “hold (c)” rating on shares of ScanSource in a report on Monday, December 29th. Zacks Research lowered ScanSource from a “strong-buy” rating to a “hold” rating in a research report on Tuesday, October 21st. Finally, Wall Street Zen downgraded ScanSource from a “buy” rating to a “hold” rating in a research note on Saturday, January 17th. One investment analyst has rated the stock with a Buy rating and three have issued a Hold rating to the stock. Based on data from MarketBeat.com, ScanSource presently has an average rating of “Hold” and a consensus price target of $42.50.

Insider Transactions at ScanSource

In related news, CFO Stephen Jones sold 5,020 shares of the firm’s stock in a transaction that occurred on Thursday, December 11th. The shares were sold at an average price of $42.30, for a total transaction of $212,346.00. Following the transaction, the chief financial officer owned 83,326 shares of the company’s stock, valued at approximately $3,524,689.80. This trade represents a 5.68% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. Also, CEO Michael L. Baur sold 9,459 shares of ScanSource stock in a transaction that occurred on Tuesday, December 16th. The shares were sold at an average price of $41.42, for a total transaction of $391,791.78. Following the completion of the sale, the chief executive officer owned 182,512 shares of the company’s stock, valued at $7,559,647.04. This trade represents a 4.93% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders have sold a total of 25,020 shares of company stock valued at $1,035,669 over the last ninety days. Company insiders own 3.18% of the company’s stock.

Institutional Investors Weigh In On ScanSource

Several institutional investors and hedge funds have recently modified their holdings of SCSC. Legato Capital Management LLC acquired a new position in ScanSource during the fourth quarter worth $459,000. LSV Asset Management boosted its stake in shares of ScanSource by 40.6% during the 4th quarter. LSV Asset Management now owns 847,863 shares of the industrial products company’s stock worth $33,118,000 after acquiring an additional 244,903 shares in the last quarter. Abacus Wealth Partners LLC acquired a new position in shares of ScanSource during the 4th quarter valued at about $313,000. Dana Investment Advisors Inc. raised its stake in shares of ScanSource by 7.3% in the 4th quarter. Dana Investment Advisors Inc. now owns 224,048 shares of the industrial products company’s stock valued at $8,751,000 after acquiring an additional 15,196 shares in the last quarter. Finally, Denali Advisors LLC raised its stake in shares of ScanSource by 5.6% in the 4th quarter. Denali Advisors LLC now owns 110,337 shares of the industrial products company’s stock valued at $4,310,000 after acquiring an additional 5,896 shares in the last quarter. Institutional investors and hedge funds own 97.91% of the company’s stock.

ScanSource Trading Up 5.6%

The stock has a market capitalization of $842.28 million, a price-to-earnings ratio of 11.78, a price-to-earnings-growth ratio of 0.59 and a beta of 1.28. The company has a current ratio of 1.96, a quick ratio of 1.32 and a debt-to-equity ratio of 0.11. The company has a fifty day moving average of $40.90 and a two-hundred day moving average of $41.77.

ScanSource Company Profile

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.