ScanSource to Post Q1 Earnings: What's in the Cards for the Stock?

Core Viewpoint - ScanSource, Inc. is set to report its first-quarter fiscal 2026 results on November 6, with revenue estimates indicating a slight growth of 1.2% year-over-year and earnings per share expected to improve by 8% from the previous year [1]. Financial Estimates - The Zacks Consensus Estimate for revenues in the upcoming quarter is $784.85 million, reflecting a 1.2% increase from the same quarter last year [1]. - The consensus estimate for quarterly earnings is 91 cents per share, suggesting an 8% improvement compared to the year-ago quarter [1]. - The estimates for earnings and revenues have remained unchanged over the past 60 days [1]. Earnings Surprise History - ScanSource has beaten the Zacks Consensus Estimates in three of the last four quarters, with an average earnings surprise of 7.10% [2][3]. - The earnings surprise percentages for the last four quarters were 12.09%, 11.69%, -4.49%, and 9.09% respectively [3]. Segment Performance - The Specialty Technology Solutions segment is expected to report sales of $752 million, indicating stable performance compared to the previous year [7]. - The Intelisys & Advisory segment's sales are estimated at $24.4 million, representing a 5% increase from $23.3 million in the same quarter last year [9]. - The company anticipates modest revenue growth in the first half of fiscal 2026, with expectations for a stronger performance in the second half [9]. Cost Management - ScanSource has implemented cost reduction and restructuring programs, projected to yield approximately $10.5 million in annualized savings in selling, general, and administrative expenses [10]. - These ongoing cost-saving measures are expected to contribute positively to earnings for the quarter [11]. Stock Performance - Year-to-date, ScanSource's shares have declined by 10.9%, contrasting with a 0.2% growth in the industry [12].