NASDAQ$CNXN

PC Connection Inc · Q2 2021 earnings

Q2 2021 earnings · · Investor relations

Briefing

PC Connection's Q2 2021 performance was marked by significant revenue and net income growth, driven by strong demand across all segments and strategic advancements in cloud and services offerings.

PC Connection reported a robust second quarter in 2021, with a 28% increase in net sales to $704.2 million and a 126.3% surge in net income to $17.3 million. The company's diluted EPS also saw a substantial rise, reaching $0.66, reflecting strong performance across its business segments despite supply chain disruptions.

  • Net sales increased by 28.0% year-over-year, reaching $704.2 million.
  • Net income rose by 126.3% compared to the prior year quarter, amounting to $17.3 million.
  • Diluted EPS increased by 125.6% year-over-year, reaching $0.66 per share.
  • Strong growth was observed in the healthcare, retail, and manufacturing vertical markets.

Headline financials

Total Revenue

$704M

Previous: $550M+28.0%
EPS (adj)

$0.66

Previous: $0.32+106.3%
Gross Margin

16.5%

Previous: 16.2%+1.9%
Operating Margin

3.4%

Previous: 1.9%+78.9%
Inventory Turns

16

Previous: 12+33.3%
Days Sales Outstanding

70

Previous: 68+2.9%
Free Cash Flow

$17.3M

Previous: -$571K+3128.4%
Net Income

$17.3M

Previous: $7.64M+126.2%
Operating Income

$23.8M

Previous: $10.6M+124.4%
Gross Profit

$116M

Previous: $89M+30.7%
Cash & Equivalents

$116M

Previous: $166M-30.3%
Total Assets

$1.03B

Previous: $954M+8.1%
Stock-Based Comp

$1.03M

Previous: $624K+64.4%

Revenue & EPS history

PC Connection · Revenue · Quarterly

$704M

Q2 2021+28%vs Q2 2020
Beat estimate in 14 of 16 quarters(88%)
ActualEstimate

Revenue by segment

PC Connection · $704M total across 3 segments · Q2 2021

  • Enterprise Solutions
    $307M+24.5%
  • Business Solutions
    $267M+39.9%
  • Public Sector Solutions
    $130M+15.7%

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q2 2021

Historical avgQ2 2021

+1.3%

Avg return

Earnings day

+0.7%

Avg return

5 days after

+1.6%

Avg return

30 days after

60%

39 / 65 earnings

Positive

+21.8%

Q2 2019

Best reaction

-24.3%

Q4 2019

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+2.6%+3.1%+9.8%
Q4 2025+9.1%+8.4%+0.9%
Q3 2025-1.3%-3.8%-4.7%
Q1 2025+7.0%+9.8%+5.4%
Q4 2024-10.8%-8.6%-11.2%
Q3 2024-8.0%-2.7%+4.9%
Q2 2024+6.7%-0.3%+3.8%
Q1 2024-4.3%+0.2%+9.1%
Q4 2023+8.5%+5.6%+0.3%
Q3 2023+5.3%+11.8%+11.8%
Q2 2023+5.5%+8.5%+9.2%
Q1 2023-2.8%-2.0%+16.5%
Q4 2022-14.2%-13.5%-11.3%
Q3 2022-7.4%-5.3%+5.5%
Q2 2022+2.5%+3.0%+2.2%
Q1 2022-3.5%-6.2%-8.7%
Q4 2021+15.2%+10.9%+18.4%
Q3 2021+6.9%+1.9%-6.5%
Q2 2021-0.6%+2.3%+3.8%
Q1 2021-1.1%-3.7%+1.4%
Q4 2020-10.3%-9.7%-10.0%
Q3 2020+3.7%-5.9%-8.0%
Q2 2020-0.7%+0.4%-4.1%
Q1 2020+6.9%-7.2%+0.7%
Q4 2019-24.3%-19.8%-22.1%
Q3 2019+11.5%+12.8%+12.6%
Q2 2019+21.8%+12.4%+7.7%
Q1 2019+1.3%-4.0%-13.3%
Q4 2018+19.4%+19.1%+15.7%
Q3 2018-7.9%-5.9%-5.4%
Q2 2018+11.3%+12.5%+16.8%
Q1 2018+9.6%+9.9%+10.6%
Q4 2017+0.7%-3.9%+3.7%
Q3 2017+0.1%+0.7%-1.7%
Q2 2017-5.4%-5.2%-10.6%
Q1 2017+3.2%+7.9%-3.4%
Q4 2016+2.5%+0.3%-1.0%
Q3 2016-6.4%-6.5%+9.1%
Q2 2016+2.1%+1.4%+5.0%
Q1 2016-0.2%
Q4 2015-0.4%
Q3 2015-0.4%
Q2 2015-1.2%
Q1 2015-1.5%
Q4 2014-0.3%
Q3 2014+1.6%
Q2 2014+1.4%
Q1 2014+2.1%
Q4 2013+2.2%
Q3 2013+0.0%
Q2 2013-4.0%
Q1 2013+0.6%
Q4 2012+3.1%
Q3 2012-4.6%
Q2 2012+1.9%
Q1 2011+4.1%
Q1 2012+1.5%
Q4 2009-0.7%
Q4 2011-0.7%
Q3 2010+1.0%
Q3 2011+1.0%
Q4 2010+7.0%
Q2 2011+7.0%
Q2 2010+7.0%
Q1 2010+5.6%

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