NASDAQ$CNXN

PC Connection Inc · Q4 2021 earnings

Q4 2021 earnings · · Investor relations

Briefing

Reported record revenue and gross profit for the fourth quarter, driven by the Enterprise and Business Solutions segments.

Connection (PC Connection, Inc.) reported strong Q4 2021 results, with net sales increasing by 18.4% year-over-year to $800.2 million and net income increasing by 37.4% to $22.4 million, or $0.85 per diluted share. The company's performance was driven by strong growth in the Enterprise and Business Solutions segments, and was significantly impacted by the ongoing needs of customers to work-from-anywhere.

  • Net sales increased by 18.4% to $800.2 million compared to the prior year quarter.
  • Net income increased by 37.4% to $22.4 million, or $0.85 per diluted share, compared to the prior year quarter.
  • Business Solutions segment net sales increased by 14.4% to $303.5 million.
  • Enterprise Solutions segment net sales increased by 33.3% to $367.3 million.

Headline financials

Total Revenue

$800M

Previous: $676M+18.4%
EPS (adj)

$0.85

Previous: $0.62+37.1%
Gross Margin

15.9%

Previous: 16.1%-1.2%
Operating Margin

3.9%

Previous: 2.9%+34.5%
Inventory Turns

14

Previous: 18-22.2%
Days Sales Outstanding

65

Previous: 75-13.3%
Net Income

$22.4M

Previous: $16.3M+37.4%
Operating Income

$31.3M

Previous: $19.8M+58.4%
Gross Profit

$127M

Previous: $109M+16.7%
Cash & Equivalents

$108M

Previous: $95.7M+13.2%
Total Assets

$1.08B

Previous: $1.02B+6.7%
Stock-Based Comp

$1.11M

Previous: $802K+38.8%

Revenue & EPS history

PC Connection · Revenue · Quarterly

$800M

Q4 2021+18.4%vs Q4 2020
Beat estimate in 13 of 16 quarters(81%)
ActualEstimate

Revenue by segment

PC Connection · $800M total across 3 segments · Q4 2021

  • Enterprise Solutions
    $367M+33.3%
  • Business Solutions
    $303M+14.4%
  • Public Sector Solutions
    $129M-4.1%

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 Q4 2021

Historical avgQ4 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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