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

ScanSource, Inc. SCSC is scheduled to report first-quarter fiscal 2026 results on Nov. 6, before market open.

The Zacks Consensus Estimate for the quarter’s revenues is pegged at $784.85 million, indicating growth of 1.2% from the prior-year quarter. The consensus mark for quarterly earnings currently stands at 91 cents per share, suggesting an improvement of 8% from the year-ago quarter. The estimates have remained unchanged over the past 60 days.

SCSC’s Earnings Surprise History

ScanSource’s earnings beat the Zacks Consensus Estimates in three of the trailing four quarters but missed in one. The company has a trailing four-quarter earnings surprise of 7.10%, on average. The trend is shown in the chart below.

What the Zacks Model Unveils for SCSC Stock

Our proven model doesn’t conclusively predict an earnings beat for ScanSource this season. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that’s not the case here.

Earnings ESP: The Earnings ESP for ScanSource is 0.00%.

You can uncover the best stocks before they’re reported with our Earnings ESP Filter.

Zacks Rank: The company currently carries a Zacks Rank of 3. You can see the complete list of today’s Zacks #1 Rank stocks here.

Factors Likely to Have Shaped ScanSource’s Q1 Performance

The Specialty Technology Solutions segment serves channel sales partners in the United States, Canada and Brazil. The segment is seeing broad-based hardware growth in North America, led by double-digit growth in mobility and barcode, physical security, and managed connectivity. The segment also benefited from several large deals and the Advantix acquisition in the fourth quarter of fiscal 2025. We expect these factors to have continued in the first quarter of fiscal 2026 as well.

The Zacks Consensus Estimate for the Specialty Technology Solutions segment’s sales for the to-be-reported quarter is currently pegged at $752 million, suggesting in-line results with the year-ago quarter.

The Intelisys & Advisory segment provides sales and services to both channel sales partners (Intelisys) and end users (Advisory) in the United States. Net sales for the segment were up 1% in the last reported quarter, aided by the contribution from the Resourcive acquisition. We expect the acquisition to have likely contributed to the segment’s sales in the first quarter of fiscal 2026 as well.

The Zacks Consensus Estimate for the Intelisys & Advisory segment’s sales for the first quarter of fiscal 2026 stands at $24.4 million. It indicates a 5% improvement over the segment’s sales of $23.3 million in the year-ago quarter. ScanSource had guided low single digit growth in total revenues for the first half of fiscal 2026 citing the dynamic macro environment. Revenues are expected to pick up pace in the second half of fiscal 2026.

In September 2024, ScanSource had executed a cost reduction and restructuring program to align costs with demand, which is projected to result in approximately $10.5 million in annualized savings in selling, general and administrative expenses. In January 2025, it executed an additional cost reduction and restructuring plan, which will add to its savings in selling, general and administrative expenses.

Overall, modest revenue growth, combined with ongoing cost-saving measures, is expected to have driven improved earnings for the quarter.

ScanSource’s Price Performance

So far this year, shares of ScanSource have fallen 10.9% against the industry’s 0.2% growth.

Stocks Poised to Beat Earnings Estimates

Here are some stocks, which according to our model, have the right combination of elements to post an earnings beat in their upcoming releases.

MasterCraft Boat Holdings MCFT has an Earnings ESP of +4.08% and a Zacks Rank of 1 at present. MasterCraft Boat is scheduled to report its first-quarter fiscal 2026 results on Nov. 6.

The Zacks Consensus Estimate for MasterCraft Boat’s quarter’s earnings is 16 cents per share, suggesting year-over-year growth of 33.33%. MCFT has an average trailing four quarter earnings surprise of 397.22%.

Ralph Lauren RL currently has an Earnings ESP of +0.67% and a Zacks Rank of 2. Ralph Lauren is slated to report its second-quarter fiscal 2026 results on Nov. 6.

The Zacks Consensus Estimate for Ralph Lauren’s to-be-reported quarter’s earnings is $3.45 per share, suggesting year-over-year growth of 35.8%. RL has an average trailing four-quarter earnings surprise of 8.49%.

Expedia Group EXPE currently has an Earnings ESP of +8.44% and carries a Zacks Rank of 2. Expedia is set to report its third-quarter 2025 results on Nov. 6.

The Zacks Consensus Estimate for the quarter’s earnings is $7.21 per share, suggesting 17.6% growth. Expedia has an average trailing four-quarter earnings surprise of 3.40%.

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

This article originally published on Zacks Investment Research (zacks.com).

Zacks Investment Research