PC Connection Beats on Both Top and Bottom Lines
PC Connection (NAS: PCCC) reported earnings on May 3. Here are the numbers you need to know.
The 10-second takeaway
For the quarter ended March 31 (Q1), PC Connection beat slightly on revenues and beat expectations on earnings per share.
Compared with the prior-year quarter, revenue grew and GAAP earnings per share increased significantly.
Margins expanded across the board.
PC Connection reported revenue of $498.8 million. The one analyst polled by S&P Capital IQ predicted net sales of $490.6 million on the same basis. GAAP reported sales were 8.0% higher than the prior-year quarter's $461.9 million.
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 one earnings estimate compiled by S&P Capital IQ predicted $0.21 per share. GAAP EPS of $0.21 for Q1 were 24% higher than the prior-year quarter's $0.17 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 13.4%, 70 basis points better than the prior-year quarter. Operating margin was 2.0%, 30 basis points better than the prior-year quarter. Net margin was 1.1%, 10 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $533.6 million. On the bottom line, the average EPS estimate is $0.32.
Next year's average estimate for revenue is $2.17 billion. The average EPS estimate is $1.25.
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 113 members out of 132 rating the stock outperform, and 19 members rating it underperform. Among 38 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 33 give PC Connection a green thumbs-up, and five give it a red thumbs-down.
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At the time this article was published Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings. He is the co-advisor ofMotley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Try any of our Foolish newsletter services free for 30 days. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
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