Pc Connection ( (CNXN) ) has released its Q4 earnings. Here is a breakdown of the information Pc Connection presented to its investors.
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PC Connection, Inc., operating under the brand name Connection, is a prominent IT solutions provider serving multiple markets including business, government, healthcare, and education sectors. With its headquarters in Merrimack, NH, the company is known for delivering customized computer systems and has a significant presence in the United States and internationally through its GlobalServe subsidiary.
In the latest earnings report, Connection reported a mixed performance for the fourth quarter and full year of 2024. The company experienced a slight increase in fourth-quarter net sales to $708.9 million, up 1.8% from the previous year, while the full-year net sales saw a decline of 1.7% to $2.8 billion. Despite a challenging sales environment, the company managed to achieve a record gross margin for the year, driven by its focus on advanced technology solutions.
Key metrics revealed that Connection’s net income for the fourth quarter dropped by 12.9% to $20.7 million, with diluted EPS decreasing to $0.78, compared to $0.90 in the previous year. However, the full-year net income showed a positive trend, rising by 4.6% to $87.1 million. The company also increased its gross profit by 1.6% year-over-year to $519.8 million, with a gross margin improvement of 60 basis points. Strategic initiatives included investments in AI and modern infrastructure, which are expected to enhance future capabilities.
During the quarter, different segments within the company displayed varied performances. The Public Sector Solutions segment experienced a significant sales increase of 42.9%, while the Enterprise Solutions segment saw a decrease of 6.4%. Product-wise, there was a notable rise in notebook/mobility and desktop sales, whereas software sales experienced a steep decline.
Looking ahead, Connection remains optimistic about the gradual improvement of the IT products and solutions market. The company continues to focus on strategic investments and strengthening its integrated solutions offerings, positioning itself well for future growth opportunities in the evolving technology landscape.
