ScanSource sees FY27 net sales growth of 6% to 10%, excluding the MicroAge acquisition.
Company expects FY27 adjusted EBITDA of $158 mln to $165 mln, excluding MicroAge.
ScanSource forecasts FY27 free cash flow of at least $85 mln.
Drivers of the quarter
Hardware demand - Co said Q4 net sales growth was driven by strong hardware demand, especially in North America.
Recurring revenue - Recurring revenue increased 13.5% yr/yr in Q4, including acquisitions.
Vendor programs - Co said higher gross profit margin for the year reflected a higher contribution of recurring revenue and higher vendor program recognition.
Q4 sales and earnings beat estimates
US technology distributor's Q4 net sales rose 17% yr/yr, beating analyst expectations.
Adjusted EPS for Q4 beat analyst expectations.
Company announced agreement to acquire MicroAge, expanding IT solutions capabilities.
The current average analyst rating on the shares is "hold" and the breakdown of recommendations is no "strong buy" or "buy", 3 "hold" and no "sell" or "strong sell".
The average consensus recommendation for the computer hardware peer group is "buy."
Wall Street's median 12-month price target for ScanSource, Inc. is $57.00, about 10.9% above its August 19 closing price of $51.42.
The stock recently traded at 12 times the next 12-month earnings vs. a P/E of 9 three months ago.
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