Why Is SCANSOURCE INC (SCSC) Stock Down Today?

ScanSource (SCSC) shares fell 20.90% to $45.07 on Wednesday. The primary driver was a significant miss in first-quarter non-GAAP earnings, which was partially offset by strong revenue growth and a substantial raise in full-year guidance.

What Happened

The company reported first-quarter fiscal 2027 revenue of $962.2 million, beating the consensus estimate of $859.5 million by $100.97 million. However, non-GAAP earnings per share came in at $0.86, missing the $1.12 estimate by $0.26. Management attributed the margin pressure to credit issues in Brazil, which tempered an otherwise strong quarter.

Following the close of the MicroAge acquisition, ScanSource raised its fiscal 2027 net sales guidance to a range of $3.8 billion to $4.0 billion. This new outlook exceeds the prior consensus estimate of $3.64 billion. The company also provided an adjusted EBITDA outlook of $175 million to $185 million. A Form 8-K filed on November 5, 2026, disclosed the preliminary results and financial statements.

What The Data Shows

The stock’s market capitalization stands at $1.1 billion with a P/E ratio of 15.7. Trailing twelve-month revenue growth is 6.1%, while the net margin is 2.4%. The stock has a beta of 1.26 and trades within a 52-week range of $33.76 to $66.78. Over the last eight sessions prior to the drop, the stock had moved up 1.3% from $59.68 to $60.44.

Recent insider activity shows two sales totaling $872,000 in the last 90 days. Stephen Jones, the Senior Executive Vice President and Chief Financial Officer, sold shares on September 3, 2026. Brandy Ford, the Senior Vice President and Chief Accounting Officer, sold shares on September 4, 2026. There were no insider buys in the same period.

What To Watch

Investors will monitor how the company manages the margin pressure in Brazil and integrates the MicroAge business. The raised fiscal 2027 guidance suggests management expects continued strong sales growth, but the earnings miss highlights the challenges in maintaining profitability during this expansion phase.