PC Connection, Inc. (NASDAQ:CNXN) just released its quarterly report and things are looking bullish. The company beat forecasts, with revenue of US$701m, some 8.5% above estimates, and statutory earnings per share (EPS) coming in at US$0.51, 23% ahead of expectations. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.
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Following the latest results, PC Connection's twin analysts are now forecasting revenues of US$3.01b in 2025. This would be a credible 5.0% improvement in revenue compared to the last 12 months. Statutory per-share earnings are expected to be US$3.43, roughly flat on the last 12 months. In the lead-up to this report, the analysts had been modelling revenues of US$2.94b and earnings per share (EPS) of US$3.30 in 2025. So there seems to have been a moderate uplift in sentiment following the latest results, given the upgrades to both revenue and earnings per share forecasts for next year.
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With these upgrades, we're not surprised to see that the analysts have lifted their price target 8.6% to US$76.00per share.
Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. The analysts are definitely expecting PC Connection's growth to accelerate, with the forecast 6.7% annualised growth to the end of 2025 ranking favourably alongside historical growth of 1.1% per annum over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 7.2% annually. PC Connection is expected to grow at about the same rate as its industry, so it's not clear that we can draw any conclusions from its growth relative to competitors.
The Bottom Line
The most important thing here is that the analysts upgraded their earnings per share estimates, suggesting that there has been a clear increase in optimism towards PC Connection following these results. There was also an upgrade to revenue estimates, although as we saw earlier, forecast growth is only expected to be about the same as the wider industry. We note an upgrade to the price target, suggesting that the analysts believes the intrinsic value of the business is likely to improve over time.
Following on from that line of thought, we think that the long-term prospects of the business are much more relevant than next year's earnings. We have analyst estimates for PC Connection going out as far as 2026, and you can see them free on our platform here.
Another thing to consider is whether management and directors have been buying or selling stock recently. We provide an overview of all open market stock trades for the last twelve months on our platform, 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.