ScanSource reported a strong top-line performance for the first quarter of 2027, with net sales surging 30.1% year-over-year to $962.3 million. However, non-GAAP diluted EPS of $0.86 fell short of analyst estimates, pressured by a significant contraction in gross profit margins and specific credit exposure issues in Brazil. The company raised its full-year 2027 outlook to reflect the recent closing of the MicroAge acquisition.
Key Highlights
- Net sales reached $962.3 million, outperforming the $848.6 million estimate, driven by 28.2% growth in Specialty Technology Solutions.
- Non-GAAP diluted EPS of $0.86 was negatively impacted by approximately $0.16 due to $4.5 million in higher bad debt expense related to customer credit exposures in Brazil.
- Gross profit margin contracted to 12.2% from 14.5% in the prior-year period, primarily due to a higher volume of lower-margin large hardware deals.
- The Intelisys & Solution Services segment revenue grew 85.9% to $45.0 million, including a one-month contribution of $20.0 million from the newly acquired MicroAge.