PCM, Inc. (PCMI) Tops Q4 EPS by 10c, Revenues Beat; Offers FY19 EPS Guidance Above Consensus

PCM, Inc. (NASDAQ: PCMI) reported Q4 EPS of $0.57, $0.10 better than the analyst estimate of $0.47. Revenue for the quarter came in at $564.1 million versus the consensus estimate of $511.56 million.

• Net Sales of $564.1 million in Q4 and $2,164.0 Million for Full Year
• Gross Profit Increased 6% in Q4 to $84.8 Million and 6% for Full Year to $343.9 Million
• Gross Profit Margin Increased 40 Basis Points to 15.0% in Q4 and 90 Basis Points to 15.9% for Full Year
• Diluted EPS Increased $0.75 to $0.48 and Increased $1.63 for Full Year to $1.83
• Non-GAAP Adjusted EPS Increased $0.54 in Q4 to $0.57 and Increased $1.44 for Full Year to $2.36
• Generated Cash Flow from Operations of $46 Million for Q4 and $134 Million for Full Year

Frank Khulusi, Chairman and CEO of PCM, Inc., stated, “We finished the year with another fantastic quarter of profitable growth while continuing to improve our balance sheet and deliver shareholder value. These results confirm the effectiveness of our strategy to leverage our investments, further optimize our sales mix, while managing our costs. I am very pleased with how our team executed in the fourth quarter and throughout 2018, further moving us up the value chain with our customers. Much like we saw in the first three quarters of the year, we drove solid results in the fourth quarter in our areas of strategic focus, such as managed services, advanced technologies and cloud and security solutions, and again walked away from some non-strategic low-margin volume business we identified as unprofitable.”

Commenting on PCM’s outlook for 2019, Khulusi concluded, “On the back of a stellar 2018 and reflecting a strong outlook for 2019, we are targeting gross profit growth in the mid single digits over 2018 on low single digit sales growth. We are also targeting adjusted EPS in the range of $2.55 to $2.75. These results reflect a continuation of year over year reductions during the first half of the year of non-strategic lower margin volume business we have identified as unprofitable while we continue to execute in our areas of strategic focus. As a result, we expect year over year growth in sales and gross profit to accelerate throughout the course of the year, with Q1 being our seasonally lowest quarter in sales and profitability. We strongly feel that the future for PCM is very bright, and we’re better positioned than ever. I am extremely grateful to our PCM team who through their hard work, dedication and unwavering commitment to our vision are making our success possible.”

GUIDANCE:

PCM, Inc. sees FY2019 EPS of $2.55-$2.75, versus the consensus of $2.52.

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

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