ScanSource Q4 Earnings Surpass Estimates, Revenues Increase Y/Y

ScanSource, Inc. SCSC reported adjusted earnings of $1.02 per share in fourth-quarter fiscal 2025 (ended June 30, 2025), beating the Zacks Consensus Estimate of 91 cents. The bottom line improved 28% from the prior-year quarter’s earnings of 80 cents.On a reported basis, the company delivered earnings of 88 cents per share compared with the prior-year quarter’s 64 cents per share.ScanSource, Inc. Price, Consensus and EPS Surprise  ScanSource, Inc. price-consensus-eps-surprise-chart | ScanSource, Inc. QuoteSCSC’s Revenues Rise Y/Y On North America GrowthThe company reported net revenues  of $813 million in the quarter under review, up 8.9% from the year-ago quarter. The top line beat the Zacks Consensus Estimate of $773 million.Net revenues in the United States and Canada were up 12.2% to $745 million. International sales decreased 17.4% to $68.2 million.Specialty Technology Solutions’ revenues rose 9.2% to $789 million in fourth-quarter fiscal 2024, courtesy of broad-based growth in North America.Revenues at Intelisys & Advisory were $24.2 million in the reported quarter, up 1.3% year over year, driven by acquisitions.ScanSource’s Adjusted EBITDA Margin Rises in Q4The cost of sales amounted to $708 million in the fiscal fourth quarter, up 9.1% from the year-ago quarter. The gross profit totaled $105 million, up 8% from the year-ago quarter’s $97 million. The gross margin came in at 12.9% in the reported quarter compared with the prior-year quarter’s 13%.Selling, general and administrative expenses increased 4.7% year over year to $72 million. The adjusted operating profit was $31 million in comparison to the prior-year quarter’s $26 million. Adjusted EBITDA was up 13% year over year to $38.6 million. The adjusted EBITDA margin was 4.7% compared with 4.6% in the prior-year quarter.SCSC’s Cash Position & Balance SheetThe company reported cash and cash equivalents of $126 million as of June 30, 2025, in comparison to $185 million as of June 30, 2024. The company generated $112 million of cash in operating activities in fiscal 2025 compared with $372 million in the prior year. The company’s long-term debt was $128 million at the end of fiscal 2025, down from $136 million at the end of fiscal 2024.FY24 Performance of ScanSourceSCSC reported adjusted earnings per share of $3.57 in fiscal 2025 in comparison with $3.08 in the prior year. The bottom line beat the Zacks Consensus Estimate of $3.47.Including one-time items, the bottom line came in at $3.00, declining 2% from $3.06 in fiscal 2024. Revenues were down 6.7% year over year to $3.04 billion. The top line beat the Zacks Consensus Estimate of $3.01 billion.SCSC FY26 OutlookScanSource expects net revenues of $3.1-$3.3 billion for fiscal 2026. Adjusted EBITDA is projected between $150 million and $160 million. The company expects a free cash flow of at least $80 million.ScanSource’s Share Price PerformanceThe company's shares have lost 8.7% in the past year against the industry’s 18% growth.  Image Source: Zacks Investment Research SCSC’s Zacks RankScanSource currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.SCSC’s Peer PerformancesMSC Industrial Direct Company, Inc. MSM reported a third-quarter fiscal 2025 (ended on May 31, 2025) adjusted EPS of $1.08, which beat the Zacks Consensus Estimate of $1.03. The bottom line decreased 18.8% year over year.MSC Industrial generated revenues of around $971 million in the quarter under review, down 0.8% from $979 million in the year-ago quarter. The top line beat the Zacks Consensus Estimate of $970 million. Average daily sales fell 0.8% year over year in the quarter. However, this came in line with the company’s expectations, driven by improving performance in volumes.SiteOne Landscape Supply, Inc. SITE posted an adjusted EPS of $2.86 in the second quarter of 2025, missing the Zacks Consensus Estimate of $2.89. The company posted earnings of $2.63 per share in the second quarter of 2024.SITE registered revenues of $1.46 billion for the June-end quarter of 2025, in line with the Zacks Consensus Estimate. The top line rose 3.4% year over year.W.W. Grainger, Inc. GWW reported earnings per share (EPS) of $9.97 in second-quarter 2025, missing the Zacks Consensus Estimate of $10.00. However, the bottom line improved 2% year over year.Grainger’s quarterly revenues rose 5.6% year over year to $4.55 billion. The top line beat the Zacks Consensus Estimate of $4.52 billion. Daily sales increased 5.6% from the prior-year quarter. We predicted daily sales to increase 3.8% in the quarter.5 Stocks Set to DoubleEach was handpicked by a Zacks expert as the #1 favorite stock to gain +100% or more in the coming year. While not all picks can be winners, previous recommendations have soared +112%, +171%, +209% and +232%.Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.Today, See These 5 Potential Home Runs >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report W.W. Grainger, Inc. (GWW): Free Stock Analysis Report MSC Industrial Direct Company, Inc. (MSM): Free Stock Analysis Report ScanSource, Inc. (SCSC): Free Stock Analysis Report SiteOne Landscape Supply, Inc. (SITE): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks