Why did SCSC's Q3 2025 EPS fall short of forecasts?

ScanSource's Q3 2025 EPS fell short of forecasts due to a combination of revenue shortfall and increased expenses:

1. **Revenue Shortfall**: The company's revenues were below expectations, with a reported $747.5 million for the quarter, representing a 15.5% year-over-year decline. This missed analysts’ expectations by 11.8%. The decline in revenue was likely a significant factor in the EPS shortfall, as it directly impacts the profitability calculated for the period.
2. **Expenses**: The company also faced challenges in controlling costs, as evidenced by the drop in net sales and operating income. This suggests that despite the revenue shortfall, ScanSource incurred higher expenses during the quarter, which further strained the company's profitability and contributed to the EPS shortfall.

In summary, the EPS shortfall for ScanSource in Q3 2025 was likely a result of a combination of lower-than-expected revenue and increased expenses, which together squeezed the company's profit margins.

|code|Ticker|Name|Date|Basic EPS|Estimate EPS|market_code|
|---|---|---|---|---|---|---|
|SCSC|SCSC.O|ScanSource|2024 Q4|0.6514|0.92|185|
|SCSC|SCSC.O|ScanSource|2025 Q1|0.7|0.81|185|
|SCSC|SCSC.O|ScanSource|2025 Q2|0.72|0.91|185|
|SCSC|SCSC.O|ScanSource|2025 Q3||0.77|185|