Quick Summary
- ScanSource delivered Q4 adjusted earnings per share of $1.46, exceeding analyst expectations of $1.14 by $0.32
- Quarterly revenue reached $953.1 million, significantly surpassing the $821.95 million forecast, representing a 17% year-over-year increase
- The technology distributor unveiled plans to purchase MicroAge for $220.5 million in an all-cash transaction
- Shares of SCSC rallied 19% during Thursday’s premarket session
- Management projects fiscal 2027 net sales expansion of 6% to 10%, not factoring in the MicroAge transaction
Shares of ScanSource (SCSC) skyrocketed approximately 19% in Thursday’s premarket session following the technology distributor’s impressive fourth-quarter earnings performance and the revelation of a $220.5 million deal to acquire IT solutions integrator MicroAge.
The company’s adjusted earnings per share of $1.46 for the period handily surpassed the Wall Street consensus estimate of $1.14 by $0.32. Quarterly revenue totaled $953.1 million, crushing analyst projections of $821.95 million and marking a 17% improvement from the $812.9 million recorded in the corresponding quarter of the previous year.
Hardware demand fueled the impressive quarterly performance. The Specialty Technology Solutions division generated net sales of $927.2 million, representing a 17.6% year-over-year surge, supported by widespread growth across North American markets.
The Intelisys and Advisory segment saw net sales increase 7.2% year-over-year to $25.9 million, primarily attributable to stronger Resourcive revenue.
Gross profit expanded 14% to $119.8 million, although the gross profit margin experienced a modest contraction to 12.6% from 12.9% in the prior-year period.
Operating income advanced 19% to $31.7 million. On a GAAP accounting basis, the company’s fourth-quarter net income grew to $25.6 million, or $1.24 per diluted share, compared with $20.1 million, or $0.88 per diluted share, in the same quarter last year.
Strategic MicroAge Acquisition
ScanSource revealed its intention to acquire MicroAge through a $220.5 million all-cash transaction. Chief Executive Officer Mike Baur stated the purchase “will accelerate growth, expand margins, and adds new services capabilities.”
The MicroAge transaction is anticipated to reach completion during the quarter concluding September 30, 2026, subject to customary regulatory clearances.
Fiscal Year 2026 Performance
For the complete fiscal year 2026, ScanSource reported net sales of $3.23 billion, reflecting a 6.1% year-over-year gain. Annual gross profit climbed 7% to $437.4 million, while the gross profit margin strengthened to 13.6% from 13.4%.
Operating income for the full year increased to $98.6 million versus $85.2 million in the prior year. On a GAAP basis, fiscal 2026 net income totaled $78.9 million, or $3.64 per diluted share, up from $71.5 million, or $3.00 per diluted share, in fiscal 2025.
Full-year adjusted EBITDA advanced 4.8% to $151.5 million.
ScanSource closed the fiscal year with cash holdings of $88.4 million and total debt of $101.4 million. The company produced $123.1 million in operating cash flow and $113.8 million in free cash flow throughout fiscal 2026.
Additionally, the company executed $97.9 million in share repurchases during the twelve-month period.
For the upcoming fiscal 2027, management issued guidance calling for net sales growth between 6% and 10%, along with adjusted EBITDA ranging from $158 million to $165 million, excluding any impact from the pending MicroAge acquisition.
The post ScanSource (SCSC) Stock Soars 19% Following Robust Q4 Results and Strategic MicroAge Deal appeared first on Blockonomi.
