IT solutions provider Connection (NASDAQ: CNXN) will be reporting results this Wednesday after market close. Here’s what investors should know.
Connection beat analysts’ revenue expectations by 8.5% last quarter, reporting revenues of $701 million, up 10.9% year on year. It was an incredible quarter for the company, with an impressive beat of analysts’ EPS estimates.
Is Connection a buy or sell going into earnings? Read our full analysis here, it’s free.
This quarter, analysts are expecting Connection’s revenue to grow 3.7% year on year to $764.1 million, improving from its flat revenue in the same quarter last year. Adjusted earnings are expected to come in at $0.91 per share.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Connection has missed Wall Street’s revenue estimates five times over the last two years.
Looking at Connection’s peers in the tech hardware & electronics segment, some have already reported their Q2 results, giving us a hint as to what we can expect. TD SYNNEX delivered year-on-year revenue growth of 7.2%, beating analysts’ expectations by 4.4%, and Amphenol reported revenues up 56.5%, topping estimates by 11.9%. TD SYNNEX traded up 7.9% following the results while Amphenol was also up 2.6%.
Read our full analysis of TD SYNNEX’s results here and Amphenol’s results here.
There has been positive sentiment among investors in the tech hardware & electronics segment, with share prices up 2.3% on average over the last month. Connection is down 1.9% during the same time and is heading into earnings with an average analyst price target of $76 (compared to the current share price of $64.51).
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