Tech distributor ScanSource's Q4 sales, profit beat estimates

Overview

• ScanSource Q4 net sales rise 8.9%, beating analyst expectations, per LSEG data

• Adjusted EPS for Q4 beats consensus, rising to $1.02, per LSEG data

• Adjusted EBITDA for Q4 increases 13%, surpassing estimates, per LSEG data

Outlook

• ScanSource sees FY26 net sales between $3.1 bln and $3.3 bln

• Company expects FY26 adjusted EBITDA of $150 mln to $160 mln

• ScanSource anticipates FY26 free cash flow of at least $80 mln

Result Drivers

• RECURRING REVENUE - Recurring revenue increased 30% year-over-year, driven by acquisitions

• NORTH AMERICA GROWTH - Specialty Technology Solutions sales rose 9.2%, fueled by broad-based growth in North America

• PRODUCT AND SERVICE SALES - Net sales for products and services grew 8.1% year-over-year

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 1 "strong buy" or "buy", 1 "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 $54.00, about 21.2% above its August 20 closing price of $42.53

Press Release: ID:nBwj4gWba