ScanSource (NASDAQ: SCSC) saw its stock price plummet 6.85% in pre-market trading on Thursday, following the release of its first-quarter earnings report. Despite beating earnings per share (EPS) estimates, the company's sales figures fell short of expectations, raising concerns among investors.

The technology products distributor reported adjusted earnings of $1.06 per share, surpassing the analyst consensus estimate of $0.93 by 13.98%. This represents a 26.19% increase from the $0.84 per share earned in the same period last year. However, ScanSource's quarterly sales of $739.650 million missed the analyst consensus estimate of $787.367 million by 6.06%. More worryingly, this figure represents a 4.63% decrease compared to sales of $775.580 million in the same quarter of the previous year.

While ScanSource's bottom line performance was strong, with adjusted net income reaching $23.685 million and adjusted EBITDA at $38.59 million, the market appears to be focusing on the company's top-line weakness. The significant miss on sales estimates and the year-over-year revenue decline seem to be the primary drivers behind the stock's pre-market plunge. Despite these challenges, ScanSource has reaffirmed its guidance for the fiscal year 2026, suggesting management's confidence in the company's long-term prospects. Investors will likely be watching closely to see if ScanSource can reverse its sales trend in the coming quarters.