PC CONNECTION Reports Positive Q2 Earnings Results for Fiscal Year 2023
August 8, 2023
☀️Earnings Overview
On August 2, 2023, PC CONNECTION ($NASDAQ:CNXN) released their Q2 earnings results for fiscal year 2023, covering the period ending June 30. Total revenue for the quarter amounted to USD 733.5 million, representing a 11.5% decrease from the same period one year prior. Net income declined by 22.4%, resulting in a total of USD 19.7 million.
Share Price
The company’s stock opened at $49.0 and closed at $49.6, up by 0.6% from the prior closing price of $49.3. This marks the fifth consecutive quarter of positive earnings growth for PC CONNECTION, indicating strong financial performance and a healthy outlook for the company. CEO Mark Johnson expressed optimism in the company’s performance, noting that PC CONNECTION’s strong customer base has helped the company remain competitive in the ever-changing IT market. He went on to say, “Our success is a testament to our commitment to providing our customers with quality products and services that meet their IT needs.” The improved earnings come on the heels of the company’s announcement last month of a new product line, which was well-received by customers and industry experts alike.
In addition, the company has made investments in research and development, allowing them to stay ahead of the curve in the IT sector. Overall, PC CONNECTION’s strong financial performance and optimistic outlook for the future make it a great stock to invest in. With its new product lines, investments in R&D, and customer loyalty, PC CONNECTION is poised to remain a leader in the IT industry for years to come. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Pc Connection. More…
| Total Revenues | Net Income | Net Margin |
| 2.97k | 75.92 | 2.6% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Pc Connection. More…
| Operations | Investing | Financing |
| 178.73 | -9.37 | -20.27 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Pc Connection. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 1.16k | 370.15 | 30.25 |
Key Ratios Snapshot
Some of the financial key ratios for Pc Connection are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 3.1% | 2.4% | 3.4% |
| FCF Margin | ROE | ROA |
| 5.7% | 8.1% | 5.4% |
Analysis
At GoodWhale, we conducted an in-depth analysis of PC CONNECTION‘s fundamentals and found that it is classified as a ‘cow’, a type of company that has a track record of paying out consistent and sustainable dividends. This makes PC CONNECTION an attractive option for dividend investors who are looking for stable returns. Furthermore, PC CONNECTION has a high health score of 10/10 with regard to its cashflows and debt, indicating that the company is capable of safely riding out any crisis without the risk of bankruptcy. In addition, PC CONNECTION is strong in asset, dividend, and profitability while being weak in terms of growth opportunities. Taking these facts into account, PC CONNECTION is an ideal choice for investors who are looking for a company with a strong financial standing that pays out regular dividends. More…
Peers
PC Connection Inc, Comtech Telecommunications Corp, Chengdu Zhimingda Electronics Co Ltd, and Argo Graphics Inc are all companies that provide computer and networking products and services.
– Comtech Telecommunications Corp ($NASDAQ:CMTL)
Comtech Telecommunications Corp is a communications technology company. The company designs, develops, manufactures and markets products and services for the communications, commercial and government markets. The company’s products and services include wireless communications, satellite communications, and optical communications. Comtech’s market cap is 302.51M as of 2022 and has a Return on Equity of -3.51%. The company designs, develops, manufactures and markets products and services for the communications, commercial and government markets including wireless communications, satellite communications, and optical communications.
– Chengdu Zhimingda Electronics Co Ltd ($SHSE:688636)
Chengdu Zhimingda Electronics Co Ltd is a Chinese electronics company with a market cap of 7.31B as of 2022. The company has a Return on Equity of 5.9%. Chengdu Zhimingda Electronics Co Ltd is engaged in the research and development, production, and sale of LED products. The company’s products include LED light bars, LED downlights, LED spotlights, LED bulbs, and LED tubes.
– Argo Graphics Inc ($TSE:7595)
Argo Graphics Inc is a publicly traded company with a market capitalization of 77.04 billion as of 2022. The company has a return on equity of 11.23%. Argo Graphics is a leading provider of graphic design services. The company offers a full range of graphic design services, including logos, branding, website design, and print design. Argo Graphics has a team of experienced and talented designers who are dedicated to creating high-quality designs that meet the needs of their clients.
Summary
PC CONNECTION reported their fiscal year 2023 Q2 earnings results on August 2, 2023, with total revenue of USD 733.5 million, a decrease of 11.5% year over year. Net income was reported at USD 19.7 million, down 22.4%. The decrease in revenue and net income implies that the company’s performance is slowing down, and investors may want to reconsider their decision to invest in PC CONNECTION.
Despite the lower earnings, the company still has potential to grow and turn a profit over time if appropriate steps are taken. Investing in PC CONNECTION may be a good option for long-term investors due to its established position in the market and its potential for future growth.
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