SCSC · ScanSource, Inc.
AI read · Good for SCSC
The AI's read
ScanSource posted a strong Q4: sales +17% YoY, non-GAAP EPS +43% to $1.46, $114m free cash flow, and announced the MicroAge acquisition which expands services and reach. That combo is a clear company-specific growth kicker. The market already reacted hard, with SCSC jumping ~15% today while RSI sits mid-50s, so a lot is now priced in. Yet the guidance of 6–10% revenue growth and near-zero net leverage gives real runway beyond one quarter. Our take: lean bullish on the story because the numbers and strategic M&A matter, but size discipline matters given the big gap up and downtrend regime. Keep conviction but expect chop as investors reprice multiples and integrate MicroAge.