PC Connection Q4 gross profit rises 4.5%

Reuters
Feb 05
<a href="https://laohu8.com/S/CNXN">PC Connection</a> Q4 gross profit rises 4.5%

Overview

  • IT solutions provider's Q4 net sales fell 0.8% y/y, gross profit rose 4.5%

  • Adjusted EPS for Q4 rose to $0.91 from $0.78 y/y

  • Company increased share repurchase program by $50 mln

Outlook

  • Company did not provide specific financial guidance for future periods in press release

Result Drivers

  • BUSINESS SOLUTIONS GROWTH - Business Solutions segment net sales rose 4.2% to $273.5 mln, with gross profit up 11.4% and margin increasing 160 basis points

  • ENTERPRISE SOLUTIONS PERFORMANCE - Enterprise Solutions segment net sales grew 11.9% to $338.7 mln, with gross billings up 16.1%

  • PUBLIC SECTOR DECLINE - Public Sector Solutions segment net sales fell 36.8% to $90.8 mln, with gross billings down 23.7%

Key Details

Metric

Beat/Miss

Actual

Consensus Estimate

Q4 EPS

$0.82

Q4 Net Income

$83.72 mln

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 29.3% above its February 3 closing price of $58.79

  • The stock recently traded at 15 times the next 12-month earnings vs. a P/E of 16 three months ago

Press Release: ID:nBw1SY7Pga

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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.)

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