PC Connection (CNXN) Q4 Earnings and Revenues Lag Estimates

Core Viewpoint - PC Connection (CNXN) reported quarterly earnings of $0.78 per share, missing the Zacks Consensus Estimate of $0.90 per share, representing a year-over-year decline from $0.90 per share [1][2] Financial Performance - The company posted revenues of $708.9 million for the quarter ended December 2024, which was 1.02% below the Zacks Consensus Estimate and an increase from $696.47 million year-over-year [2] - Over the last four quarters, PC Connection has surpassed consensus EPS estimates only once and has topped consensus revenue estimates just once [2] Stock Performance - PC Connection shares have increased approximately 5.1% since the beginning of the year, outperforming the S&P 500's gain of 2.7% [3] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $0.60 on revenues of $664.66 million, and for the current fiscal year, it is $3.59 on revenues of $2.93 billion [7] - The estimate revisions trend for PC Connection is currently unfavorable, leading to a Zacks Rank 4 (Sell) for the stock, indicating expected underperformance in the near future [6] Industry Context - The Retail - Computer Hardware industry, to which PC Connection belongs, is currently ranked in the bottom 6% of over 250 Zacks industries, suggesting potential challenges for stock performance [8]