As you might know, PC Connection, Inc. (NASDAQ:CNXN) just kicked off its latest quarterly results with some very strong numbers. It was overall a positive result, with revenues beating expectations by 4.7% to hit US$736m. PC Connection reported statutory earnings per share (EPS) US$0.99, which was a notable 19% above what the analysts had forecast. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.

Following the latest results, PC Connection's two analysts are now forecasting revenues of US$2.85b in 2024. This would be an okay 3.4% improvement in revenue compared to the last 12 months. Statutory per share are forecast to be US$3.42, approximately in line with the last 12 months. Yet prior to the latest earnings, the analysts had been anticipated revenues of US$2.79b and earnings per share (EPS) of US$3.35 in 2024. It looks like there's been a modest increase in sentiment following the latest results, withthe analysts becoming a bit more optimistic in their predictions for both revenues and earnings.

With these upgrades, we're not surprised to see that the analysts have lifted their price target 8.6% to US$76.00per share.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the PC Connection's past performance and to peers in the same industry. The analysts are definitely expecting PC Connection's growth to accelerate, with the forecast 6.9% annualised growth to the end of 2024 ranking favourably alongside historical growth of 1.6% 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.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. We have analyst estimates for PC Connection going out as far as 2025, and you can see them free on our platform here.

Before you take the next step you should know about the 1 warning sign for PC Connection that we have uncovered.

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