ScanSource Inc Q4 sales beat estimates on hardware demand

ScanSource

20/08/2026 13:41

Overview
US technology distributor's Q4 net sales rose 17% yr/yr, beating analyst expectations
Adjusted EPS for Q4 beat analyst expectations
Company announced agreement to acquire MicroAge, expanding IT solutions capabilities

Outlook
ScanSource sees FY27 net sales growth of 6% to 10%, excluding MicroAge acquisition
Company expects FY27 adjusted EBITDA of $158 mln to $165 mln, excluding MicroAge
ScanSource forecasts FY27 free cash flow of at least $85 mln

Result Drivers
HARDWARE DEMAND - Co said Q4 net sales growth was driven by strong hardware demand, especially in North America
RECURRING REVENUE - Recurring revenue increased 13.5% yr/yr in Q4, including acquisitions
VENDOR PROGRAMS - Co said higher gross profit margin for the year reflected a higher contribution of recurring revenue and higher vendor program recognition

Company press release: ID:nBw3t0Cc0a

Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
Q4 Sales
Beat
$953.11 mln
$802.06 mln (3 Analysts)
Q4 Adjusted EPS
Beat
$1.46
$1.14 (4 Analysts)
Q4 Adjusted Net Income
 
$30.28 mln
 
Q4 Adjusted EBITDA
 
$46.15 mln
 
Q4 Gross Profit
 
$119.85 mln
 
Q4 Operating Income
 
$31.74 mln
 

Analyst Coverage
The current average analyst rating on the shares is "hold" and the breakdown of recommendations is no "strong buy" or "buy", 3 "hold" and no "sell" or "strong sell"
The average consensus recommendation for the computer hardware peer group is "buy."
Wall Street's median 12-month price target for ScanSource, Inc. is $57.00, about 10.9% above its August 19 closing price of $51.42
The stock recently traded at 12 times the next 12-month earnings vs. a P/E of 9 three months ago

Reuters Recommended Reads
Aug 18 - Jack Henry & Associates' Q4 adj revenue just beats on license and hardware growth
Aug 18 - Sweden's Alcadon Q2 net sales rise 2.1%, EBITA up 9.1%
Aug 20 - Germany's Platform Group H1 revenue rises 22.7% on organic growth, confirms 2026 outlook

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)