Technology distribution company ScanSource (NASDAQ: SCSC) will be reporting results this Thursday morning. Here’s what to look for.
ScanSource beat analysts’ revenue expectations by 4.6% last quarter, reporting revenues of $812.9 million, up 8.9% year on year. It was an exceptional quarter for the company, with an impressive beat of analysts’ revenue estimates and a beat of analysts’ EPS estimates.
Is ScanSource a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, analysts are expecting ScanSource’s revenue to grow 1.5% year on year to $787.4 million, a reversal from the 11.5% decrease it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.93 per share.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. ScanSource has missed Wall Street’s revenue estimates three times since going public.
Looking at ScanSource’s peers in the it distribution & solutions segment, some have already reported their Q3 results, giving us a hint as to what we can expect. TD SYNNEX delivered year-on-year revenue growth of 6.6%, beating analysts’ expectations by 3.5%, and Avnet reported revenues up 5.3%, topping estimates by 3%. TD SYNNEX traded up 9.5% following the results while Avnet was down 4.6%.
Read our full analysis of TD SYNNEX’s results here and Avnet’s results here.
The euphoria surrounding Trump’s November win lit a fire under major indices, but potential tariffs have caused the market to do a 180 in 2025. While some of the it distribution & solutions stocks have shown solid performance in this choppy environment, the group has generally underperformed, with share prices down 5.4% on average over the last month. ScanSource is down 3.8% during the same time and is heading into earnings with an average analyst price target of $53 (compared to the current share price of $41.07).
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