NASDAQ$CNXN

PC Connection Inc · Q3 2023 earnings

Q3 2023 earnings · · Investor relations

Briefing

Net income and earnings per share reached record levels.

Connection reported a decrease in net sales by 10.6% year-over-year, but net income increased by 10.3% and diluted EPS increased by 10.4% to $0.97. Gross margin expanded to a record 19.0% due to improved mix of advanced technologies and integrated solutions.

  • Net sales decreased by 10.6% year-over-year.
  • Gross profit decreased by 3.5% year-over-year.
  • Net income increased by 10.3% year-over-year.
  • Diluted EPS increased by 10.4% year-over-year to $0.97.

Headline financials

Total Revenue

$693M

Previous: $776M-10.6%
EPS (adj)

$0.97

Previous: $0.88+10.2%
Gross Margin

19.0%

Previous: 17.6%+8.0%
Operating Margin

4.6%

Previous: 4.1%+12.2%
Inventory Turns

16

No prior period
Days Sales Outstanding

71

No prior period
Capital Expenditures

-$7.36M

Previous: $2.41M-405.2%
Free Cash Flow

$18.2M

Previous: $23.2M-21.4%
Net Income

$25.6M

Previous: $23.2M+10.3%
Operating Income

$32M

Previous: $31.7M+0.9%
Gross Profit

$132M

Previous: $137M-3.5%
Cash & Equivalents

$241M

Previous: $116M+107.0%
Total Assets

$1.18B

Previous: $1.13B+4.2%
Stock-Based Comp

$1.79M

Previous: $1.28M+39.5%

Revenue & EPS history

PC Connection · Revenue · Quarterly

$693M

Q3 2023-10.6%vs Q3 2022
Beat estimate in 7 of 15 quarters(47%)
ActualEstimate

Revenue by segment

PC Connection · $693M total across 3 segments · Q3 2023

  • Enterprise Solutions
    $277M-9.5%
  • Business Solutions
    $269M-14.8%
  • Public Sector Solutions
    $147M-4.4%

Forward guidance

This earnings release contains forward-looking statements regarding future events, financial results, business plans, new products and services, expenditures, costs, investments, liabilities, impairments, competition, and macroeconomic conditions.

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 Q3 2023

Historical avgQ3 2023

+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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