PC Connection Q3 net sales, profit rise on strong customer demand
CNXN•PC Connection’s third-quarter net sales rose 23% year over year to $874.3 million, and adjusted EPS increased to $1.24 from $0.97. Gross margin fell 110 basis points to 18.5%.
1. Quarterly results
PC Connection reported third-quarter net sales of $874.3 million, up 23% year over year, and adjusted EPS of $1.24, compared with $0.97 a year earlier. Net sales and adjusted EPS beat consensus estimates of $796.56 million and $1.04, respectively. Gross margin declined 110 basis points to 18.5%.
2. Sales drivers
The company said strong customer demand contributed to record net sales, gross billings and gross profit. Growth in notebooks and mobility, desktops, servers and storage, and networking drove the sales increase. Enterprise and Business Solutions had strong sales growth, while Public Sector growth was modest. The company did not provide specific financial guidance for future quarters or the full year in its press release.
