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Dec 31, 2024
PC Connection Q4 2024 Earnings Report
PC Connection reported its financial results for the fourth quarter of 2024, with net sales increasing by 1.8% year-over-year, while net income and diluted EPS decreased.
Key Takeaways
Connection (CNXN) announced its fourth quarter and full year 2024 results. For Q4 2024, net sales increased by 1.8% to $708.9 million, but net income decreased by 12.9% to $20.7 million, and diluted EPS fell to $0.78. Gross profit remained flat year-over-year. The company also declared a quarterly dividend of $0.15 per share.
Net sales for Q4 2024 increased by 1.8% year-over-year to $708.9 million.
Gross profit for Q4 2024 was flat year-over-year at $129.8 million, with gross margin decreasing by 30 basis points to 18.3%.
Net income for Q4 2024 decreased by 12.9% to $20.7 million, resulting in diluted EPS of $0.78.
The Board of Directors declared a quarterly dividend of $0.15 per share.
Revenue by Segment
Forward Guidance
The company believes that the market for IT products and solutions will gradually improve as the year progresses.
Positive Outlook
- Record gross margins driven by sales of advanced technologies, including cloud, software, and security solutions.
- Significant investments made to enhance integrated solutions capabilities, including AI and modern infrastructure.
- Anticipated gradual improvement in the IT products and solutions market as the year progresses.
Challenges Ahead
- Substantial competition reducing market share.
- Significant price competition reducing profit margins.
- Loss of major vendors adversely affecting product offerings.
- Service interruptions at third-party shippers negatively impacting product delivery.
- Increases in shipping costs reducing margins and adversely affecting results of operations.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
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Avg. Return Before/After Earnings
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