PC Connection
The 10-second takeaway
For the quarter ended Sep. 30 (Q3), PC Connection met expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue dropped slightly and GAAP earnings per share increased.
Margins increased across the board.
Revenue details
PC Connection booked revenue of $561.3 million. The two analysts polled by S&P Capital IQ expected to see revenue of $568.6 million on the same basis. GAAP reported sales were 2.5% lower than the prior-year quarter's $575.6 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS details
EPS came in at $0.37. The two earnings estimates compiled by S&P Capital IQ anticipated $0.35 per share. GAAP EPS of $0.37 for Q3 were 5.7% higher than the prior-year quarter's $0.35 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
Margin details
For the quarter, gross margin was 12.9%, 70 basis points better than the prior-year quarter. Operating margin was 2.9%, 10 basis points better than the prior-year quarter. Net margin was 1.8%, 20 basis points better than the prior-year quarter.
Looking ahead
Next quarter's average estimate for revenue is $568.0 million. On the bottom line, the average EPS estimate is $0.31.
Next year's average estimate for revenue is $2.18 billion. The average EPS estimate is $1.20.
Investor sentiment
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 112 members out of 133 rating the stock outperform, and 21 members rating it underperform. Among 35 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 30 give PC Connection a green thumbs-up, and five give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on PC Connection is hold, with an average price target of $13.00.
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