PC Connection (CNXN) Expected to Beat Earnings Estimates: Can the Stock Move Higher?

Core Viewpoint - The market anticipates that PC Connection (CNXN) will report flat earnings of $0.90 per share for the quarter ended December 2024, with revenues expected to increase by 2.8% to $716.23 million compared to the previous year [1][3]. Earnings Expectations - The upcoming earnings report is scheduled for February 5, and the stock price may rise if actual results exceed expectations, while a miss could lead to a decline [2]. - The consensus EPS estimate has been revised down by 6.25% over the last 30 days, indicating a reassessment by analysts [4]. Earnings Surprise Prediction - The Zacks Earnings ESP model suggests that the Most Accurate Estimate for PC Connection is higher than the Zacks Consensus Estimate, resulting in a positive Earnings ESP of +2.22% [10][11]. - A positive Earnings ESP is a strong indicator of an earnings beat, especially when combined with a Zacks Rank of 1, 2, or 3 [8]. Historical Performance - In the last reported quarter, PC Connection was expected to earn $1.01 per share but reported $0.97, resulting in a surprise of -3.96% [12]. - Over the past four quarters, the company has beaten consensus EPS estimates twice [13]. Conclusion - PC Connection is viewed as a compelling candidate for an earnings beat, but investors should consider other factors that may influence stock performance beyond earnings results [16].