PC Connection Earnings: Here’s Why the Stock is Up Now

PC Connection, Inc. (NASDAQ:PCCC) delivered a profit and beat Wall Street’s expectations, AND beat the revenue expectation. The revenue beat is a positive sign to shareholders seeking high growth out of the company. Shares are up 2.89%.

PC Connection, Inc. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share increased 6.06% to $0.35 in the quarter versus EPS of $0.33 in the year-earlier quarter.

Revenue: Rose 2.71% to $557.29 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: PC Connection, Inc. reported adjusted EPS income of $0.35 per share. By that measure, the company beat the mean analyst estimate of $0.34. It beat the average revenue estimate of $549.73 million.

Quoting Management: “I am pleased with our results this quarter. We increased revenues, gross margin, operating margin, and earnings per share in a challenging environment. We had solid performance in our healthcare vertical that increased by 25%. We continue to transform our business to provide higher value technology solutions that help our customers solve their business challenges,” said Timothy McGrath, President and Chief Executive Officer. “We believe the strategies we have put in place will position us well to gain market share and enhance long-term shareholder value.”

Key Stats (on next page)…

Revenue increased 10.26% from $505.42 million in the previous quarter. EPS increased 52.17% from $0.23 in the previous quarter.

Looking Forward: Analysts have a more negative outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has fallen from a profit of $0.4 to a profit $0.39. For the current year, the average estimate has moved up from a profit of $1.32 to a profit of $1.36 over the last ninety days.

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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)