Sidoti Issues Optimistic Estimate for PC Connection Earnings

Key Points

• Sidoti raised its earnings outlook for PC Connection, forecasting FY2026 EPS of $4.38, up from $4.08 and above the $4.18 consensus estimate. It projects continued growth to $4.68 in FY2027 and $5.15 in FY2028.
• PC Connection’s latest quarter exceeded expectations, with EPS of $1.24 versus the $1.04 consensus and revenue of $874.31 million versus $773.74 million. Strong AI-server demand was cited as a key growth driver.
• The company declared a quarterly dividend of $0.20 per share, equivalent to $0.80 annually and a 0.9% yield, while its stock opened at $85.62 after declining 1%.

PC Connection, Inc. (NASDAQ:CNXN - Free Report) - Sidoti lifted their FY2026 earnings estimates for PC Connection in a report issued on Thursday, October 29th. Sidoti analyst A. Lebiedzinski now forecasts that the company will earn $4.38 per share for the year, up from their previous estimate of $4.08. The consensus estimate for PC Connection's current full-year earnings is $4.18 per share. Sidoti also issued estimates for PC Connection's Q4 2026 earnings at $1.06 EPS, Q3 2027 earnings at $1.25 EPS, Q4 2027 earnings at $1.23 EPS, FY2027 earnings at $4.68 EPS, Q1 2028 earnings at $0.87 EPS, Q2 2028 earnings at $1.55 EPS, Q3 2028 earnings at $1.37 EPS and FY2028 earnings at $5.15 EPS.

Other analysts have also issued research reports about the company. Weiss Ratings raised PC Connection from a "buy (b-)" rating to a "buy (b)" rating in a research report on Thursday, October 8th. Zacks Research cut PC Connection from a "strong-buy" rating to a "hold" rating in a research note on Monday, September 28th. One analyst has rated the stock with a Buy rating and one has issued a Hold rating to the company. According to MarketBeat, the company presently has a consensus rating of "Moderate Buy".

PC Connection Stock Down 1.0%

Shares of CNXN opened at $85.62 on Friday. PC Connection has a fifty-two week low of $54.97 and a fifty-two week high of $96.90. The company has a market cap of $2.16 billion, a P/E ratio of 21.14, a PEG ratio of 2.07 and a beta of 0.81. The firm's 50 day moving average price is $86.59 and its 200 day moving average price is $72.18.

PC Connection (NASDAQ:CNXN - Get Free Report) last posted its quarterly earnings data on Wednesday, October 28th. The company reported $1.24 EPS for the quarter, beating the consensus estimate of $1.04 by $0.20. The business had revenue of $874.31 million during the quarter, compared to analyst estimates of $773.74 million. PC Connection had a net margin of 3.25% and a return on equity of 11.54%.

PC Connection Dividend Announcement

The company also recently declared a quarterly dividend, which will be paid on Friday, November 27th. Investors of record on Tuesday, November 10th will be paid a $0.20 dividend. The ex-dividend date is Tuesday, November 10th. This represents a $0.80 dividend on an annualized basis and a yield of 0.9%. PC Connection's payout ratio is currently 19.75%.

Insider Activity at PC Connection

In other news, Director David Beffa-Negrini sold 5,000 shares of the firm's stock in a transaction on Friday, August 14th. The shares were sold at an average price of $81.05, for a total value of $405,250.00. Following the sale, the director directly owned 60,875 shares in the company, valued at approximately $4,933,918.75. This trade represents a 7.59% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Also, Chairman Patricia Gallup sold 8,004 shares of the firm's stock in a transaction on Tuesday, October 20th. The shares were sold at an average price of $86.57, for a total transaction of $692,906.28. Following the completion of the sale, the chairman owned 6,906,383 shares in the company, valued at $597,885,576.31. The trade was a 0.12% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold a total of 62,136 shares of company stock valued at $5,312,310 in the last quarter. 56.60% of the stock is currently owned by company insiders.

Institutional Trading of PC Connection

A number of hedge funds and other institutional investors have recently bought and sold shares of CNXN. BlackRock Inc. purchased a new position in shares of PC Connection during the second quarter worth about $158,833,000. Dimensional Fund Advisors LP increased its position in shares of PC Connection by 0.3% during the first quarter. Dimensional Fund Advisors LP now owns 1,526,494 shares of the company's stock worth $89,237,000 after purchasing an additional 4,345 shares in the last quarter. Bank of New York Mellon Corp lifted its holdings in shares of PC Connection by 1.2% in the 1st quarter. Bank of New York Mellon Corp now owns 138,286 shares of the company's stock valued at $8,084,000 after purchasing an additional 1,650 shares during the last quarter. Denali Advisors LLC lifted its holdings in shares of PC Connection by 19.1% in the 2nd quarter. Denali Advisors LLC now owns 99,200 shares of the company's stock valued at $7,241,000 after purchasing an additional 15,900 shares during the last quarter. Finally, Man Group plc purchased a new stake in shares of PC Connection in the 2nd quarter valued at about $6,925,000. 42.85% of the stock is currently owned by institutional investors and hedge funds.

Key Headlines Impacting PC Connection

Here are the key news stories impacting PC Connection this week:

• Positive Sentiment: Q3 results exceeded expectations: PC Connection reported adjusted earnings of $1.24 per share, up from $0.97 a year earlier and above the $1.04 consensus estimate. Revenue reached $874.31 million, substantially exceeding the $773.74 million analyst forecast. PC Connection Q3 2026 earnings report
• Positive Sentiment: AI server demand is supporting growth: Coverage highlighted record quarterly revenue driven by a surge in AI server demand, suggesting that PC Connection may be benefiting from continued enterprise infrastructure spending. PC Connection Q3 2026 AI server coverage
• Positive Sentiment: Sidoti raised its profit outlook: Sidoti increased its EPS forecast for Q4 2026 to $1.06 from $1.00, FY2026 to $4.38 from $4.08, and FY2027 to $4.68 from $4.55. The firm projects FY2028 EPS of $5.15, indicating expectations for continued earnings growth.
• Positive Sentiment: Dividend provides shareholder support: The company declared a quarterly dividend of $0.20 per share, or $0.80 annualized, payable November 27 to shareholders of record November 10. PC Connection quarterly dividend announcement
• Neutral Sentiment: Valuation remains a consideration: With a reported P/E ratio near 21, investors may expect sustained growth from the AI infrastructure opportunity and strong execution following the earnings beat.

About PC Connection

PC Connection, Inc is an information technology solutions provider that supplies technology products, services and expertise to businesses, government agencies, educational institutions and other organizations. The company helps customers plan, acquire, deploy and manage IT environments across workplace, data center, networking, security and cloud infrastructure.

Its offerings include computers, servers, storage systems, networking equipment, software, peripherals and related technology accessories.

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