PC Connection Beats Analyst Estimates on EPS

Just the facts, Fool.

Seth Jayson
Seth Jayson
May 6, 2013 at 12:00AM

PC Connection (Nasdaq: PCCC) reported earnings on May 2. Here are the numbers you need to know.

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.

Revenue details
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 details
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.

Margin details
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.)

Related Articles

Looking ahead
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.

Investor sentiment
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.

Looking for alternatives to PC Connection? It takes more than great companies to build a fortune for the future. Learn the basic financial habits of millionaires next door and get focused stock ideas in our free report, "3 Stocks That Will Help You Retire Rich." Click here for instant access to this free report.