The 10-second takeaway
For the quarter ended March 31 (Q1), PC Connection met expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue grew slightly. GAAP earnings per share grew.
Gross margins dropped, operating margins were steady, net margins increased.
PC Connection reported revenue of $505.4 million. The two analysts polled by S&P Capital IQ foresaw revenue of $505.6 million on the same basis. GAAP reported sales were the same as the prior-year quarter's.
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 $0.23. The two earnings estimates compiled by S&P Capital IQ forecast $0.22 per share. GAAP EPS of $0.23 for Q1 were 9.5% higher than the prior-year quarter's $0.21 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 13.2%, 20 basis points worse than the prior-year quarter. Operating margin was 2.0%, much about the same as the prior-year quarter. Net margin was 1.2%, 10 basis points better than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $550.8 million. On the bottom line, the average EPS estimate is $0.34.
Next year's average estimate for revenue is $2.20 billion. The average EPS estimate is $1.32.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 114 members out of 134 rating the stock outperform, and 20 members rating it underperform. Among 35 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 32 give PC Connection a green thumbs-up, and three 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 $16.00.
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