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

ScanSource, Inc. (NASDAQ:SCSC)’s stock price fell 14% on Friday following a weaker than expected earnings announcement. The stock traded as low as $36.87 and last traded at $38.1110. 7,414 shares changed hands during mid-day 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 earnings per share (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 analyst estimates of $782.46 million. During the same period last year, the business earned $0.85 earnings per share. The firm’s revenue was up 2.5% compared to the same quarter last year.

Trending Headlines about 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

Analysts Set New Price Targets

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

Insiders Place Their Bets

In other news, CFO Stephen Jones sold 5,020 shares of the firm’s stock in a transaction on Thursday, December 11th. The stock was sold at an average price of $42.30, for a total transaction of $212,346.00. Following the completion of the transaction, the chief financial officer directly owned 83,326 shares in the company, valued at $3,524,689.80. This trade represents a 5.68% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available at the SEC website. Also, CEO Michael L. Baur sold 9,559 shares of the business’s stock in a transaction on 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 owned 191,971 shares in the company, valued at $7,836,256.22. This represents a 4.74% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold 25,020 shares of company stock worth $1,035,669 over the last 90 days. 3.18% of the stock is owned by insiders.

Institutional Investors Weigh In On ScanSource

A number of hedge funds have recently added to or reduced their stakes in SCSC. Canada Pension Plan Investment Board acquired a new position in shares of ScanSource in the second quarter worth $25,000. CWM LLC boosted its holdings in ScanSource by 159.6% in the third quarter. CWM LLC now owns 1,874 shares of the industrial products company’s stock valued at $82,000 after purchasing an additional 1,152 shares during the period. Osaic Holdings Inc. grew its stake in ScanSource by 400.5% during the 2nd quarter. Osaic Holdings Inc. now owns 2,087 shares of the industrial products company’s stock worth $87,000 after purchasing an additional 1,670 shares in the last quarter. Mitsubishi UFJ Asset Management Co. Ltd. increased its holdings in ScanSource by 22.3% during the 2nd quarter. Mitsubishi UFJ Asset Management Co. Ltd. now owns 2,879 shares of the industrial products company’s stock worth $120,000 after purchasing an additional 524 shares during the period. Finally, Tower Research Capital LLC TRC raised its position in ScanSource by 672.0% in the 2nd 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 in the last quarter. 97.91% of the stock is currently owned by institutional investors and hedge funds.

ScanSource Stock Up 5.6%

The firm has a market cap of $842.28 million, a PE ratio of 11.78, a PEG 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 firm has a 50 day moving average price of $40.90 and a 200-day moving average price 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.