PC Connection Q2 adjusted EPS rises on higher sales - CNXN News | RalliesPC Connection Q2 adjusted EPS rises on higher sales
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CNXN• Outlook
- The company did not provide specific guidance or outlook for the current quarter or full year.
Quarterly results
- IT solutions provider's Q2 net sales rose 12.4% year over year to $854 million.
- Adjusted EPS for Q2 increased to $1.31 from $0.97 a year earlier.
- The company declared a quarterly dividend of $0.20 per share.
Segment and margin trends
- Notebook and desktop sales increased 19% year over year, accounting for 51% of net sales in Q2.
- Net sales in the Enterprise Solutions segment rose 13.4% and in Business Solutions by 17.3% year over year, while Public Sector Solutions was flat.
- Overall gross margin rose 30 basis points to 18.4% year over year.
Key figures and analyst view
| Metric | Beat/Miss | Actual | Consensus Estimate |
|---|
| Q2 Sales | Beat | $854 mln | $767.62 mln (2 Analysts) |
| Q2 Adjusted EPS | | $1.31 | $1.04 (2 Analysts) |
| Q2 EPS | | $1.31 | |
| Q2 Net Income | | $33.2 mln | |
| Q2 Gross Margin | | 18.4% | |
| Q2 Gross Profit | | $157.5 mln | |
- The one available analyst rating on the shares is hold.
- The average consensus recommendation for the integrated hardware and software peer group is buy.
- Wall Street's median 12-month price target for PC Connection Inc is $76.00, about 8.5% below its July 28 closing price of $83.10.
- The stock recently traded at 20 times the next 12-month earnings vs. a P/E of 15 three months ago.
