Overview

• PC Connection Q3 net sales fall 2.2% y/y, gross profit rises 2.4%

• Net income for Q3 down 8.6% y/y, diluted EPS falls to $0.97

• Company repurchased 83,693 shares for $5.1 mln in Q3

Outlook

• Company did not provide specific guidance for future quarters or full year in its press release

Result Drivers

• BUSINESS SOLUTIONS GROWTH - Net sales for Business Solutions segment increased by 1.7% to $256.8 mln, with gross profit up 7.8%

• PUBLIC SECTOR DECLINE - Public Sector Solutions segment sales fell 24.3% to $132.5 mln, with a 12.4% drop in gross profit

• STRATEGIC INITIATIVES - Co attributes gross profit growth to data center modernization, digital workplace transformation, and supply chain innovation

Key Details

Analyst Coverage

• The one available analyst rating on the shares is "hold"

• The average consensus recommendation for the integrated hardware & software peer group is "buy."

• Wall Street's median 12-month price target for PC Connection Inc is $76.00, about 17.8% above its October 28 closing price of $62.45

• The stock recently traded at 16 times the next 12-month earnings vs. a P/E of 18 three months ago

Press Release: ID:nBw7S23c7a

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)