PC Connection, Inc. (NASDAQ:PCCC) delivered a profit and beat Wall Street’s expectations, BUT came up short on beating the revenue expectation. The revenue miss is a negative sign to shareholders seeking high growth out of the company.
PC Connection, Inc. Earnings Cheat Sheet
Results: Adjusted Earnings Per Share were the same at $0.23 in the quarter as EPS of $0.23 in the year-earlier quarter.
Revenue: Rose 1.34% to $505.42 million from the year-earlier quarter.
Actual vs. Wall St. Expectations: PC Connection, Inc. reported adjusted EPS income of $0.23 per share. By that measure, the company beat the mean analyst estimate of $0.22. It missed the average revenue estimate of $505.64 million.
Quoting Management: “I am pleased with our performance this quarter, especially in light of the challenging environment in which we were operating. PC Connection increased sales in the commercial space by 3.8%, and continued to focus on taking market share through investments in higher value-added sales. Our healthcare vertical was a bright spot, with a 21% sales increase, and software also continued to be a solid growth area. In addition, we strengthened our balance sheet and generated positive cash flow during the quarter,” said Timothy McGrath, President and Chief Executive Officer. “We believe we have the right combination of talent, experience, and strategies to gain market share and enhance long-term shareholder value.”
Key Stats (on next page)…
Revenue decreased 9.14% from $556.25 million in the previous quarter. EPS decreased 30.3% from $0.33 in the previous quarter.
Looking Forward: Analysts have a more positive outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has risen from a profit of $0.34 to a profit $0.35. For the current year, the average estimate has moved up from a profit of $1.29 to a profit of $1.32 over the last ninety days.
Stocks with improving earnings metrics are worthy of your extra attention. In fact, “E = Earnings Are Increasing Quarter-Over-Quarter” is a core component of our CHEAT SHEET investing framework for this very reason. Don’t waste another minute – click here and get our CHEAT SHEET stock picks now.
(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)