Sidoti Has Optimistic Outlook of PC Connection Q1 Earnings

Key Points

• Sidoti upgraded its outlook, raising Q1 FY2027 EPS for PC Connection to $0.82 (from $0.72) and forecasting Q2 EPS of $1.23 and FY2027 EPS of $4.44, above the current consensus full-year estimate of $3.77.
• PC Connection recently beat expectations, reporting $0.77 EPS versus $0.62 expected and revenue of $721.87 million versus $696.09 million, with a 3.02% net margin and 10.24% return on equity.
• The company announced a quarterly dividend of $0.20 (annualized $0.80, yield 1.3%, DPR 24.46%); shares trade near $63.74 with a market cap of $1.61 billion and a P/E of 18.53.

PC Connection, Inc. (NASDAQ:CNXN - Free Report) - Equities researchers at Sidoti boosted their Q1 2027 earnings per share (EPS) estimates for shares of PC Connection in a report released on Thursday, April 30th. Sidoti analyst A. Lebiedzinski now anticipates that the company will post earnings of $0.82 per share for the quarter, up from their previous forecast of $0.72. The consensus estimate for PC Connection's current full-year earnings is $3.77 per share. Sidoti also issued estimates for PC Connection's Q2 2027 earnings at $1.23 EPS and FY2027 earnings at $4.44 EPS.

PC Connection (NASDAQ:CNXN - Get Free Report) last announced its earnings results on Wednesday, April 29th. The company reported $0.77 EPS for the quarter, beating analysts' consensus estimates of $0.62 by $0.15. PC Connection had a return on equity of 10.24% and a net margin of 3.02%.The firm had revenue of $721.87 million for the quarter, compared to analysts' expectations of $696.09 million.

PC Connection Stock Up 0.6%

Shares of NASDAQ:CNXN opened at $63.74 on Friday. The company has a market capitalization of $1.61 billion, a P/E ratio of 18.53, a P/E/G ratio of 1.68 and a beta of 0.83. PC Connection has a 52-week low of $54.97 and a 52-week high of $71.17. The stock's fifty day simple moving average is $61.02 and its 200-day simple moving average is $60.14.

PC Connection Dividend Announcement

The business also recently announced a quarterly dividend, which will be paid on Friday, May 29th. Investors of record on Tuesday, May 12th will be given a $0.20 dividend. The ex-dividend date of this dividend is Tuesday, May 12th. This represents a $0.80 annualized dividend and a dividend yield of 1.3%. PC Connection's dividend payout ratio (DPR) is currently 24.46%.

Hedge Funds Weigh In On PC Connection

Several institutional investors and hedge funds have recently bought and sold shares of CNXN. EverSource Wealth Advisors LLC boosted its holdings in shares of PC Connection by 625.0% in the 2nd quarter. EverSource Wealth Advisors LLC now owns 580 shares of the company's stock valued at $38,000 after purchasing an additional 500 shares during the last quarter. PNC Financial Services Group Inc. increased its holdings in shares of PC Connection by 196.7% during the 3rd quarter. PNC Financial Services Group Inc. now owns 629 shares of the company's stock worth $39,000 after buying an additional 417 shares during the last quarter. Quarry LP acquired a new position in shares of PC Connection during the 3rd quarter valued at $75,000. Russell Investments Group Ltd. lifted its holdings in shares of PC Connection by 194.0% during the 3rd quarter. Russell Investments Group Ltd. now owns 1,411 shares of the company's stock valued at $87,000 after acquiring an additional 931 shares in the last quarter. Finally, Tower Research Capital LLC TRC boosted its position in PC Connection by 535.3% during the 2nd quarter. Tower Research Capital LLC TRC now owns 1,601 shares of the company's stock worth $105,000 after purchasing an additional 1,349 shares during the period. Institutional investors and hedge funds own 42.85% of the company's stock.

PC Connection Company Profile

PC Connection, Inc NASDAQ: CNXN, now operating under the trade name Connection, is a value-added provider of information technology solutions founded in 1982 and headquartered in Merrimack, New Hampshire. The company offers a broad portfolio of hardware and software products sourced from leading technology vendors, alongside professional services designed to help organizations design, deploy and maintain IT environments.

Connection's product offerings encompass desktop and notebook computers, servers and storage systems, networking and cybersecurity solutions, as well as cloud and virtualization technologies.

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