ScanSource (NASDAQ:SCSC) Stock Price Down 14% After Earnings Miss

ScanSource, Inc. (NASDAQ:SCSC) shares fell 14% during trading on Friday after the company announced weaker than expected quarterly earnings. The company traded as low as $36.87 and last traded at $38.1110. 7,414 shares changed hands during trading, a decline of 96% from the average session volume of 202,279 shares. The stock had previously closed at $44.33.

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

More ScanSource News

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

Insider Transactions at ScanSource

In other ScanSource news, CEO Michael L. Baur sold 9,559 shares of the firm’s stock in a transaction dated Monday, December 15th. The shares were sold at an average price of $40.82, for a total value of $390,198.38. Following the completion of the sale, the chief executive officer directly owned 191,971 shares in the company, valued at $7,836,256.22. This trade represents a 4.74% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available at this link. Also, CFO Stephen Jones sold 5,020 shares of ScanSource stock in a transaction that occurred on Thursday, December 11th. The shares were sold at an average price of $42.30, for a total value of $212,346.00. Following the sale, the chief financial officer directly owned 83,326 shares in the company, valued at approximately $3,524,689.80. The trade was a 5.68% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Over the last three months, insiders sold 25,020 shares of company stock valued at $1,035,669. 3.18% of the stock is owned by insiders.

Institutional Investors Weigh In On ScanSource

Hedge funds and other institutional investors have recently added to or reduced their stakes in the company. Wasatch Advisors LP lifted its position in ScanSource by 34.9% during the third quarter. Wasatch Advisors LP now owns 1,139,573 shares of the industrial products company’s stock valued at $50,130,000 after buying an additional 294,624 shares during the period. SG Americas Securities LLC increased its stake in shares of ScanSource by 2,835.9% in the 4th quarter. SG Americas Securities LLC now owns 283,756 shares of the industrial products company’s stock worth $11,084,000 after acquiring an additional 274,091 shares in the last quarter. LSV Asset Management increased its stake in shares of ScanSource by 40.6% in 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. Jacobs Levy Equity Management Inc. lifted its position in ScanSource by 65.6% during the 3rd quarter. Jacobs Levy Equity Management Inc. now owns 389,915 shares of the industrial products company’s stock valued at $17,152,000 after acquiring an additional 154,518 shares during the period. Finally, Jane Street Group LLC boosted its stake in ScanSource by 148.3% during the first quarter. Jane Street Group LLC now owns 199,799 shares of the industrial products company’s stock worth $6,795,000 after acquiring an additional 119,317 shares in the last quarter. 97.91% of the stock is owned by hedge funds and other institutional investors.

ScanSource Trading Up 5.6%

The company has a quick ratio of 1.32, a current ratio of 1.96 and a debt-to-equity ratio of 0.11. The firm has a market cap of $842.28 million, a PE ratio of 11.78, a PEG ratio of 0.62 and a beta of 1.28. The stock’s fifty day simple moving average is $40.90 and its two-hundred day simple moving average is $41.78.

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.