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Mar 31, 2021
PC Connection Q1 2021 Earnings Report
Revenue and earnings decreased due to supply chain disruptions.
Key Takeaways
Connection's first quarter 2021 results were impacted by pandemic-driven supply chain disruptions, leading to a decrease in net sales and net income compared to the prior year quarter. While demand remained solid across all business segments, revenue decreased by 10.5% to $636.9 million, and net income decreased by 31.6% to $10.2 million.
Net sales decreased by 10.5% to $636.9 million due to supply chain constraints.
Net income decreased by 31.6% to $10.2 million, or $0.39 per diluted share.
Public Sector Solutions segment increased by 25.7% to $125.3 million.
Notebook/mobility sales increased by 17% year over year.
Revenue by Segment
Forward Guidance
The company believes strong demand will continue through 2021 as the economy continues to improve. However, pandemic-driven supply chain disruptions affected the entire industry and have impacted Q1 results.
Positive Outlook
- Solid demand in Q1 in all business segments
- Backlog drove to record levels
- Strong demand will continue through 2021
- Economy continues to improve
- Manufacturing vertical market had another impressive quarter
Challenges Ahead
- Pandemic-driven supply chain disruptions affected the entire industry
- Supply chain disruptions have impacted Q1 results
- Reduction in revenue year over year is primarily due to the supply chain constraints in the Enterprise segment
- Net income for the quarter ended March 31, 2021 decreased by 31.6%
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
Analyze how earnings announcements historically affect stock price performance
Avg. Return Before/After Earnings
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