PC Connection Q3 net sales, profit rise on strong customer demand
Overview
US IT solutions provider's Q3 net sales rose 23% yr/yr to $874.3 mln
Adjusted EPS for Q3 increased to $1.24 from $0.97 yr/yr
Gross margin for Q3 declined 110 basis points to 18.5%
Outlook
Company did not provide specific financial guidance for future quarters or the full year in its press release
Result Drivers
CUSTOMER DEMAND - Co said strong customer demand contributed to record net sales, gross billings and gross profit
PRODUCT MIX - Growth in notebooks/mobility, desktops, servers/storage and networking sales drove overall sales increase
SEGMENT PERFORMANCE - Enterprise and Business Solutions segments saw strong sales growth, while Public Sector growth was modest
Company press release:
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q3 Sales | Beat | $874.30 mln | $796.56 mln (2 Analysts) |
Q3 Adjusted EPS | Beat | $1.24 | $1.04 (2 Analysts) |
Q3 EPS | $1.24 | ||
Q3 Net Income | $31.50 mln | ||
Q3 Gross Margin | 18.50% | ||
Q3 Gross Profit | $161.90 mln |
Analyst Coverage
The one available analyst rating on the shares is "hold"
The average consensus recommendation for the integrated hardware & software peer group is "buy."
Wall Street's median 12-month price target for PC Connection, Inc. is $83.00, about 6.3% below its October 27 closing price of $88.58
The stock recently traded at 20 times the next 12-month earnings vs. a P/E of 18 three months ago
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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)