PC Connection sinks to 52-week low on bleak business update
PC Connection Inc. (Nasdaq:PCCC) has fallen 24% to a 52-week low today after providing a bleak business update that misses Wall Street expectations ahead of the opening. The Merrimack, N.H.-based company said it will report a slight increase in year-over-year sales. For the quarter ended June 30, net sales were $449.4 million, up 1.9%. Net income was $5.1 million, or $0.19 per share, compared with $5.8 million, or $0.21 per share, for the same quarter a year ago. Analysts were expecting earnings per share of $0.23 on revenues of $461.1 million. The company will provide its complete earnings report on July 31 ahead of the opening.
“We believe the current economic environment has affected the demand for information technology solutions during this past quarter, and we see this trend continuing into the third quarter,” said Patricia Gallup, chairman and CEO in a statement.
Shares of PC Connection are at $6.63 at 10:56 a.m. ET, down $2.11 from Monday’s close. The stock fell to a low for the year at $6.60 shortly after today’s opening. Trading volume is about half the average number of shares.
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