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Market Overview

PC Connection Earnings Preview

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PC Connection (NASDAQ:CNXN) will be releasing its next round of earnings this Thursday, May 06. For all of the relevant information, here is your guide for Thursday's Q1 earnings announcement.

Net Income, Earnings, And Earnings Per Share

Earnings and especially earnings per share (EPS) are useful measures of a company's profitability. Total earnings, which is also referred to as net income, equals total revenue minus total expenses. EPS equals to net income divided by the number of shares outstanding.

Earnings And Revenue

PC Connection EPS will likely be near $0.43 while revenue will be around $624.13 million, according to analysts. In the same quarter last year, PC Connection reported earnings per share of $0.56 on revenue of $711.85 million.

What Are Analyst Estimates And Earnings Surprises, And Why Do They Matter?

Wall Street analysts who study this company will publish analyst estimates of revenue and EPS. The averages of all analyst EPS and revenue estimates are called the "consensus estimates"; these consensus estimates can have a significant effect on a company's performance during an earnings release.
When a company posts earnings or revenue above or below a consensus estimate, it has posted an "earnings surprise", which can really move a stock depending on the difference between actual and estimated values.

The Wall Street consensus estimate for earnings would represent a 23.21% decrease for the company. Revenue would have fallen 12.32% from the same quarter last year. Here is how the company's reported EPS has stacked up against analyst estimates in the past:

Quarter Q4 2021 Q3 2020 Q2 2020 Q1 2020
EPS Estimate 0.62 0.65 0.66 0.53
EPS Actual 0.62 0.64 0.32 0.56
Revenue Estimate 651.27 M 653.09 M 653.04 M 638.37 M
Revenue Actual 675.69 M 652.75 M 550.00 M 711.85 M

eps graph

Stock Performance

Shares of PC Connection were trading at $47.37 as of May 04. Over the last 52-week period, shares are up 22.99%. Given that these returns are generally positive, long-term shareholders are probably happy going into this earnings release.

Do not be surprised to see the stock move on comments made during its conference call. PC Connection is scheduled to hold the call at 16:30:00 ET and can be accessed here.

 

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Posted-In: BZI-EPEarnings