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Can PC Connection Meet These Numbers?

Monday - 4/29/2013, 2:00am  ET

PC Connection is expected to report Q1 earnings on May 2. Here's what Wall Street wants to see:

The 10-second takeaway
Comparing the upcoming quarter to the prior-year quarter, average analyst estimates predict PC Connection's revenues will grow 1.4% and EPS will contract -4.3%.

The average estimate for revenue is $505.6 million. On the bottom line, the average EPS estimate is $0.22.

Revenue details
Last quarter, PC Connection tallied revenue of $556.2 million. GAAP reported sales were 0.6% higher than the prior-year quarter's $553.2 million.

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
Last quarter, EPS came in at $0.33. GAAP EPS of $0.33 for Q4 were 22% higher than the prior-year quarter's $0.27 per share.

Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Recent performance
For the preceding quarter, gross margin was 12.9%, 50 basis points better than the prior-year quarter. Operating margin was 2.6%, 50 basis points better than the prior-year quarter. Net margin was 1.6%, 30 basis points better than the prior-year quarter.

Looking ahead

The full year's average estimate for revenue is $2.22 billion. The average EPS estimate is $1.32.

Investor sentiment
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 113 members out of 133 rating the stock outperform, and 20 members rating it underperform. Among 35 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 31 give PC Connection a green thumbs-up, and four give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on PC Connection is hold, with an average price target of $13.00.

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This article was originally published as Can PC Connection Meet These Numbers?on Fool.com

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