PC Connection Q4 gross profit rises 4.5%

Overview

• IT solutions provider's Q4 net sales fell 0.8% y/y, gross profit rose 4.5%

• Adjusted EPS for Q4 rose to $0.91 from $0.78 y/y

• Company increased share repurchase program by $50 mln

Outlook

• Company did not provide specific financial guidance for future periods in press release

Result Drivers

• BUSINESS SOLUTIONS GROWTH - Business Solutions segment net sales rose 4.2% to $273.5 mln, with gross profit up 11.4% and margin increasing 160 basis points

• ENTERPRISE SOLUTIONS PERFORMANCE - Enterprise Solutions segment net sales grew 11.9% to $338.7 mln, with gross billings up 16.1%

• PUBLIC SECTOR DECLINE - Public Sector Solutions segment net sales fell 36.8% to $90.8 mln, with gross billings down 23.7%

Key Details

Analyst Coverage

• The one available analyst rating on the shares is "hold"

• The average consensus recommendation for the integrated hardware & software peer group is "buy."

• Wall Street's median 12-month price target for PC Connection Inc is $76.00, about 29.3% above its February 3 closing price of $58.79

• The stock recently traded at 15 times the next 12-month earnings vs. a P/E of 16 three months ago

Press Release: ID:nBw1SY7Pga

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