PC Connection, Inc. Just Recorded A 9.7% EPS Beat: Here's What Analysts Are Forecasting Next

As you might know, PC Connection, Inc. (NASDAQ:CNXN) just kicked off its latest first-quarter results with some very strong numbers. Results were good overall, with revenues beating analyst predictions by 3.7% to hit US$722m. Statutory earnings per share (EPS) came in at US$0.68, some 9.7% above whatthe analysts had expected. The analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.

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After the latest results, the two analysts covering PC Connection are now predicting revenues of US$3.00b in 2026. If met, this would reflect a reasonable 3.7% improvement in revenue compared to the last 12 months. Per-share earnings are expected to swell 11% to US$3.84. Yet prior to the latest earnings, the analysts had been anticipated revenues of US$2.98b and earnings per share (EPS) of US$3.77 in 2026. So it's pretty clear that, although the analysts have updated their estimates, there's been no major change in expectations for the business following the latest results.

See our latest analysis for PC Connection

The consensus price target rose 8.6% to US$76.00despite there being no meaningful change to earnings estimates. It could be that the analystsare reflecting the predictability of PC Connection's earnings by assigning a price premium.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the PC Connection's past performance and to peers in the same industry. It's clear from the latest estimates that PC Connection's rate of growth is expected to accelerate meaningfully, with the forecast 5.0% annualised revenue growth to the end of 2026 noticeably faster than its historical growth of 0.03% p.a. over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to grow their revenue at 12% per year. It seems obvious that, while the future growth outlook is brighter than the recent past, PC Connection is expected to grow slower than the wider industry.

The Bottom Line

The most obvious conclusion is that there's been no major change in the business' prospects in recent times, with the analysts holding their earnings forecasts steady, in line with previous estimates. On the plus side, there were no major changes to revenue estimates; although forecasts imply they will perform worse than the wider industry. There was also a nice increase in the price target, with the analysts clearly feeling that the intrinsic value of the business is improving.

Story Continues

With that in mind, we wouldn't be too quick to come to a conclusion on PC Connection. Long-term earnings power is much more important than next year's profits. At least one analyst has provided forecasts out to 2027, which can be seen for free on our platform here.

We also provide an overview of the PC Connection Board and CEO remuneration and length of tenure at the company, and whether insiders have been buying the stock, here.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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