Can PC Connection Beat These Numbers?

Updated

PC Connection (NAS: PCCC) is expected to report Q2 earnings on Aug. 2. Here's what Wall Street wants to see.

The 10-second takeaway
Comparing the upcoming quarter with the prior-year quarter, average analyst estimates predict PC Connection's revenues will increase 5.5% and EPS will improve 14.3%.

The average estimate for revenue is $540.8 million. On the bottom line, the average EPS estimate is $0.32.


Revenue details
Last quarter, PC Connection booked revenue of $498.8 million. 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 details
Last quarter, non-GAAP EPS came in at $0.23. 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.

Recent performance
For the preceding quarter, gross margin was 13.4%, 70 basis points better than the prior-year quarter. Operating margin was 2.0%, 40 basis points better than the prior-year quarter. Net margin was 1.1%, 10 basis points better than the prior-year quarter.

Looking ahead
The full year's average estimate for revenue is $2.20 billion. The average EPS estimate is $1.30.

Investor sentiment
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 118 members out of 138 rating the stock outperform, and 20 members rating it underperform. Among 38 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 34 give PC Connection a green thumbs-up, and four give it a red thumbs-down.

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The article Can PC Connection Beat These Numbers? originally appeared on Fool.com.

Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is the co-advisor ofMotley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. The Motley Fool has no positions in the stocks mentioned above. 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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