IT solutions provider Connection (NASDAQ: CNXN) will be reporting earnings this Wednesday after market hours. Here’s what you need to know.
Connection beat analysts’ revenue expectations last quarter, reporting revenues of $854 million, up 12.4% year on year. It was an incredible quarter for the company, with a beat of analysts’ EPS estimates.
Is Connection a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, the market is expecting Connection’s revenue to grow 9.1% year on year, a reversal from the 2.2% decrease it recorded in the same quarter last year.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business will stay the course heading into earnings. Connection has missed Wall Street’s revenue estimates multiple times over the last two years.
Looking at Connection’s peers in the tech hardware & electronics segment, some have already reported their Q3 results, giving us a hint as to what we can expect. TD SYNNEX delivered year-on-year revenue growth of 37.7%, beating analysts’ expectations by 13.5%, and Knowles reported revenues up 20.3%, topping estimates by 6.9%. TD SYNNEX traded down 8.6% following the results while Knowles was also down 3.6%.
Read our full analysis of TD SYNNEX’s results here and Knowles’s results here.
There has been positive sentiment among investors in the tech hardware & electronics segment, with share prices up 3.9% on average over the last month. Connection is down 1.1% during the same time and is heading into earnings with an average analyst price target of $83 (compared to the current share price of $88.75).
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