CNXN Earnings Prediction
The chart below shows how CNXN performed 10 days before and after its earnings report, based on data from the past quarters. Typically, CNXN sees a -0.23% change in stock price 10 days leading up to the earnings, and a +2.32% change 10 days following the report. On the earnings day itself, the stock moves by -0.05%. This data can give you a slight idea of what to expect for the next quarter's release.
CNXN Key Earning Data
2024/Q4
Year Over Year
Quarter Over Quarter
Total Revenue
708.90M
1.78%
-2.18%
Gross Margin
18.31%
-1.72%
-1.98%
Operating Margin
3.19%
-20.45%
-23.13%
Net Margin
2.92%
-14.37%
-21.72%
EPS
0.78
-14.29%
-23.53%
No Data Available
CNXN Earnings Analysis
PC Connection Inc Corporation (CNXN.O) Earnings Conference Call
Positive
Record Gross Margin Achievement: Revenue for the full year was $2.8 billion, with gross profit increasing by 1.6% to $519.8 million, resulting in a record gross margin of 18.6%.
Net Income Increase: Net income for the full year was $87.1 million, reflecting a 4.6% increase compared to the prior year, with earnings per diluted share rising to $3.29 from $3.15.
Sales Growth Analysis: In Q4, consolidated net sales reached $708.9 million, marking a 1.8% increase year-over-year, driven by notebook mobility and desktop revenue growth of 14%.
Public Sector Revenue Surge: The Public Sector Solutions segment saw a significant revenue increase of 42.9% in Q4, with net sales of $143.7 million, and gross profit rising by 30.2% to $22.2 million.
Dividend Increase and Buyback Plan: A 50% increase in the quarterly dividend to $0.15 per share was announced, alongside a share repurchase program with $59.7 million remaining for future buybacks.
Negative
Revenue Decline Analysis: Revenue decreased by 1.7% year-over-year to $2.8 billion for 2024, indicating a decline in overall sales performance.
Q4 Operating Income Decline: Operating income in Q4 fell by 19% to $22.6 million, with operating income as a percentage of sales dropping to 3.2% from 4% in the prior year quarter.
Net Income Decline: Net income for Q4 decreased by 12.9% to $20.7 million, down from $23.8 million in Q4 2023, reflecting a significant drop in profitability.
Business Solutions Sales Decline: In the Business Solutions segment, Q4 net sales were down 3.7% year-over-year, driven by a 12% decrease in advanced technology product sales.
EBITDA Decline Analysis: Adjusted EBITDA for the trailing twelve months decreased by 5% to $118.9 million compared to $125.5 million a year ago, indicating a decline in operational efficiency.
CNXN FAQs
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CNXN Earning Call Sentiment
PC Connection, Inc. (NASDAQ:CNXN) Q4 2024 Earnings Call Transcript
CNXN.O
-0.4%Positive
Despite a 50% dividend increase and strong cash position, the company faces challenges with declining technology sales, macroeconomic uncertainties, and competitive pressures. The Q&A section reveals mixed performance across verticals and unclear guidance on tariffs. While the dividend hike and stock repurchase are positives, the flat revenue outlook and potential risks balance the sentiment. Given the small market cap, the stock may experience volatility but is likely to remain neutral in the short term.
