NASDAQ$CNXN

PC Connection Inc · Q4 2024 earnings

Q4 2024 earnings · · After market close · Investor relations

Briefing

PC Connection reported its financial results for the fourth quarter of 2024, with net sales increasing by 1.8% year-over-year, while net income and diluted EPS decreased.

Connection (CNXN) announced its fourth quarter and full year 2024 results. For Q4 2024, net sales increased by 1.8% to $708.9 million, but net income decreased by 12.9% to $20.7 million, and diluted EPS fell to $0.78. Gross profit remained flat year-over-year. The company also declared a quarterly dividend of $0.15 per share.

  • Net sales for Q4 2024 increased by 1.8% year-over-year to $708.9 million.
  • Gross profit for Q4 2024 was flat year-over-year at $129.8 million, with gross margin decreasing by 30 basis points to 18.3%.
  • Net income for Q4 2024 decreased by 12.9% to $20.7 million, resulting in diluted EPS of $0.78.
  • The Board of Directors declared a quarterly dividend of $0.15 per share.

Headline financials

Total Revenue

$709M

Previous: $696M+1.8%
EPS (adj)

$0.78

Previous: $0.90-13.3%
Gross Margin

18.3%

Previous: 18.6%-1.6%
Operating Margin

3.2%

Previous: 4.0%-20.0%
Inventory Turns

23

Previous: 17+35.3%
Days Sales Outstanding

72

Previous: 73-1.4%
Notebooks/Mobility Sales Percentage

36.0%

Previous: 32.0%+12.5%
Software Sales Percentage

9.0%

Previous: 15.0%-40.0%
Accessories Sales Percentage

12.0%

Previous: 10.0%+20.0%
Desktops Sales Percentage

10.0%

No prior period
Displays and Sound Sales Percentage

8.0%

No prior period
Net/Com Products Sales Percentage

8.0%

Previous: 10.0%-20.0%
Servers/Storage Sales Percentage

8.0%

Previous: 7.0%+14.3%
Other Hardware/Services Sales Percentage

9.0%

No prior period
SG&A as Percentage of Net Sales

15.1%

Previous: 14.6%+3.4%
Capital Expenditures

-$2.36M

Previous: -$2.24M-5.4%
Net Income

$20.7M

Previous: $23.8M-12.9%
Operating Income

$22.6M

Previous: $27.9M-19.0%
Gross Profit

$130M

Previous: $130M-0.0%

Revenue & EPS history

PC Connection · Revenue · Quarterly

$709M

Q4 2024+1.8%vs Q4 2023
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

The company believes that the market for IT products and solutions will gradually improve as the year progresses.

Tailwinds

  • Record gross margins driven by sales of advanced technologies, including cloud, software, and security solutions.
  • Significant investments made to enhance integrated solutions capabilities, including AI and modern infrastructure.
  • Anticipated gradual improvement in the IT products and solutions market as the year progresses.

Headwinds

  • Substantial competition reducing market share.
  • Significant price competition reducing profit margins.
  • Loss of major vendors adversely affecting product offerings.
  • Service interruptions at third-party shippers negatively impacting product delivery.
  • Increases in shipping costs reducing margins and adversely affecting results of operations.

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 2024

Historical avgQ4 2024

+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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