PCM, Inc. (PCMI) Surges Following Blow-Out Q2

PCM, Inc. (NASDAQ: PCMI) is surging 25% in after-hours trading Wednesday after the company Q2 EPS of $0.66, versus $0.26 reported last year. Revenue for the quarter came in at $581 million, up 21% from last year's $478.87 million.

GUIDANCE:

PCM, Inc. sees FY2016 EPS of $1.51-$1.64. PCM, Inc. sees FY2016 revenue of $2.2-2.23 billion.

Frank Khulusi, Chairman and CEO of PCM, Inc., commented, “The second quarter results reflect an exciting time for PCM. We smashed our EPS guidance by beating the high-end of our range by $0.24. Our gross sales also exceeded the top-end of our expectations and we had higher than expected sales reported on a net basis and higher margin-rich sales resulting in us handily beating our gross margin and gross profit ranges. Our results represents the highest levels of net sales and gross profit in our history and demonstrate that the changes and aggressive investments we made over the past few years, including our recent acquisitions, have successfully transformed us into a growing, diversified IT solutions powerhouse. We continue to unlock strategic and financial benefits of these transformative initiatives beyond expanded scale, a larger customer base and a more robust suite of capabilities, including experienced and successful leadership, enhanced IT systems, expanded geographic presence and heightened strategic value to our customer and vendor partners. The second quarter results validate our strategic position as a larger, more profitable, and increasingly sophisticated player in a growing industry, and I am increasingly confident that we will capture a larger share of the IT solutions market and grow faster than the industry.”

Jay Miley, President of PCM, Inc., said, “I am especially encouraged by the performance of our go-to-market teams, including those who joined PCM with our recent acquisitions. Our teams are now fully trained in PCM’s combined offerings, and remain focused on increasing our market share in the U.S. and Canada. Our Endpoint Technologies, Advanced Technologies and Microsoft practice groups performed exceptionally well during the quarter. Looking forward, we will continue to shift our investments and redeploy resources towards our strategic focus on advanced solutions. I am also excited about our recently announced plans for our new Rio Rancho sales office that opens in August. We expect to hire upwards of 220 sales professionals over the next three years, and target to have at least 100 sales professionals by the end of its first year of operations. Despite these investments, we will continue to be vigilant on managing our cost structure to drive operating leverage in the business.”

For earnings history and earnings-related data on PCM, Inc. (PCMI) click here.

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