Overview
Technology distributor's Q2 FY26 sales missed analyst expectations
Adjusted EPS for Q2 FY26 missed analyst expectations
Company announced leadership changes in board committees
Outlook
ScanSource revises FY26 net sales forecast to $3.0 bln-$3.1 bln from $3.1 bln-$3.3 bln
Company lowers FY26 adjusted EBITDA forecast to $140 mln-$150 mln from $150 mln-$160 mln
ScanSource maintains FY26 free cash flow forecast at least $80 mln
Result Drivers
RECURRING REVENUE GROWTH - Recurring revenue increased 15.9% year-over-year, contributing significantly to overall sales growth
SEGMENT PERFORMANCE - Specialty Technology Solutions and Intelisys & Advisory segments drove sales growth, with North America leading the increase
CASH FLOW STRENGTH - Company reported strong free cash flow, supporting its strategic goals
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q2 Sales | Miss | $766.51 mln | $779.40 mln (3 Analysts) |
Q2 Adjusted EPS | Miss | $0.80 | $1.01 (4 Analysts) |
Q2 Adjusted Net Income | $17.61 mln | ||
Q2 Adjusted EBITDA | $31.19 mln | ||
Q2 Gross Profit | $102.91 mln | ||
Q2 Operating Income | $17.87 mln |
Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 1 "strong buy" or "buy", 2 "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 $50.00, about 12.8% above its February 4 closing price of $44.33
The stock recently traded at 10 times the next 12-month earnings vs. a P/E of 10 three months ago
Press Release: ID:nBw1psJ9Ka
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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.)