Sidoti Issues Negative Forecast for PC Connection Earnings

Key Points

• Sidoti lowered its Q3 2026 EPS estimate for PC Connection to $1.00 from $1.06, while projecting FY2026 EPS of $4.08 and FY2027 EPS of $4.55. Despite the cut, the stock maintains a “Moderate Buy” consensus rating.
• PC Connection reported a strong latest quarter, with EPS of $1.31 beating estimates of $1.00 and revenue of $854 million exceeding expectations of $764.79 million.
• The company declared a quarterly dividend of $0.20 per share, payable August 28 to shareholders of record August 11, representing an annualized $0.80 payout and roughly a 1% yield.

PC Connection, Inc. (NASDAQ:CNXN - Free Report) - Research analysts at Sidoti cut their Q3 2026 EPS estimates for shares of PC Connection in a note issued to investors on Thursday, July 30th. Sidoti analyst A. Lebiedzinski now anticipates that the company will post earnings per share of $1.00 for the quarter, down from their prior forecast of $1.06. The consensus estimate for PC Connection's current full-year earnings is $3.93 per share. Sidoti also issued estimates for PC Connection's Q4 2026 earnings at $1.00 EPS, FY2026 earnings at $4.08 EPS, Q1 2027 earnings at $0.81 EPS, Q2 2027 earnings at $1.39 EPS, Q3 2027 earnings at $1.17 EPS, Q4 2027 earnings at $1.18 EPS and FY2027 earnings at $4.55 EPS.

Several other research analysts have also weighed in on the company. Wall Street Zen raised PC Connection from a "hold" rating to a "buy" rating in a research report on Saturday, May 2nd. Weiss Ratings upgraded PC Connection from a "hold (c+)" rating to a "buy (b-)" rating in a report on Wednesday, June 3rd. One investment analyst has rated the stock with a Buy rating and one has given a Hold rating to the stock. According to data from MarketBeat.com, the stock presently has a consensus rating of "Moderate Buy".

PC Connection Trading Down 0.6%

CNXN opened at $82.49 on Friday. The stock has a market cap of $2.08 billion, a price-to-earnings ratio of 21.82, a PEG ratio of 2.11 and a beta of 0.88. PC Connection has a 1 year low of $54.97 and a 1 year high of $88.31. The stock has a fifty day moving average price of $73.88 and a 200 day moving average price of $65.81.

PC Connection (NASDAQ:CNXN - Get Free Report) last posted its quarterly earnings results on Wednesday, July 29th. The company reported $1.31 EPS for the quarter, beating the consensus estimate of $1.00 by $0.31. PC Connection had a net margin of 3.21% and a return on equity of 11.02%. The business had revenue of $854.00 million for the quarter, compared to analysts' expectations of $764.79 million.

Institutional Trading of PC Connection

Institutional investors and hedge funds have recently modified their holdings of the company. JPMorgan Chase & Co. grew its stake in PC Connection by 63.1% in the 3rd quarter. JPMorgan Chase & Co. now owns 46,021 shares of the company's stock valued at $2,853,000 after buying an additional 17,808 shares during the last quarter. Allspring Global Investments Holdings LLC lifted its position in PC Connection by 137.7% during the 1st quarter. Allspring Global Investments Holdings LLC now owns 61,038 shares of the company's stock worth $3,661,000 after acquiring an additional 35,358 shares during the last quarter. Teacher Retirement System of Texas lifted its position in PC Connection by 12.0% during the 4th quarter. Teacher Retirement System of Texas now owns 114,768 shares of the company's stock worth $6,629,000 after acquiring an additional 12,275 shares during the last quarter. OP Asset Management Ltd bought a new stake in PC Connection during the first quarter valued at about $686,000. Finally, Royce & Associates LP boosted its holdings in PC Connection by 11.2% during the fourth quarter. Royce & Associates LP now owns 79,288 shares of the company's stock valued at $4,580,000 after acquiring an additional 7,996 shares during the period. 42.85% of the stock is currently owned by institutional investors and hedge funds.

Insider Buying and Selling

In other PC Connection news, Chairman Patricia Gallup sold 7,384 shares of the stock in a transaction that occurred on Tuesday, June 9th. The stock was sold at an average price of $71.91, for a total transaction of $530,983.44. Following the transaction, the chairman owned 7,027,747 shares in the company, valued at $505,365,286.77. This trade represents a 0.10% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available at the SEC website. Insiders sold a total of 28,592 shares of company stock worth $2,048,512 in the last 90 days. Company insiders own 56.60% of the company's stock.

PC Connection Dividend Announcement

The business also recently announced a quarterly dividend, which will be paid on Friday, August 28th. Shareholders of record on Tuesday, August 11th will be given a dividend of $0.20 per share. The ex-dividend date of this dividend is Tuesday, August 11th. This represents a $0.80 dividend on an annualized basis and a yield of 1.0%. PC Connection's dividend payout ratio is presently 23.26%.

Key Stories Impacting PC Connection

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

• Positive Sentiment: The earnings beat, record revenue and record profitability reinforce the company’s operating momentum across its business, government, healthcare and education technology markets. The results may support higher earnings expectations, although analysts currently project full-year EPS of approximately $3.93. PC Connection Q2 Earnings and Revenues Beat Estimates
• Positive Sentiment: The board declared a quarterly dividend of $0.20 per share, reportedly an increase, payable August 28 to shareholders of record August 11. The dividend provides an annualized payout of $0.80 and an approximately 1% yield, adding shareholder-return support. PC Connection Posts Record Q2 Results and Raises Dividend
• Neutral Sentiment: Despite the strong report, CNXN trades near its 52-week high and at roughly 24 times earnings. The elevated valuation may limit additional upside or encourage profit-taking unless the earnings momentum continues.

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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