PC Connection (Nasdaq: PCCC ) reported earnings on Jan. 31. Here are the numbers you need to know.
The 10-second takeaway
For the quarter ended Dec. 31 (Q4), PC Connection met expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue expanded slightly and GAAP earnings per share grew significantly.
Margins grew across the board.
PC Connection tallied revenue of $556.2 million. The two analysts polled by S&P Capital IQ expected to see sales of $553.8 million on the same basis. GAAP reported sales were 0.6% higher than the prior-year quarter's $553.2 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $0.33. The two earnings estimates compiled by S&P Capital IQ predicted $0.30 per share. GAAP EPS of $0.33 for Q4 were 22% higher than the prior-year quarter's $0.27 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 12.9%, 50 basis points better than the prior-year quarter. Operating margin was 2.6%, 50 basis points better than the prior-year quarter. Net margin was 1.6%, 30 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $506.4 million. On the bottom line, the average EPS estimate is $0.22.
Next year's average estimate for revenue is $2.21 billion. The average EPS estimate is $1.29.
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 113 members out of 132 rating the stock outperform, and 19 members rating it underperform. Among 40 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 36 give PC Connection a green thumbs-up, and four give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on PC Connection is outperform, with an average price target of $13.00.
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