PCM, Inc. (PCMI) Tops Q1 EPS by 7c, Slight Beat on Revenues

PCM, Inc. (NASDAQ: PCMI) reported Q1 EPS of $0.46, $0.07 better than the analyst estimate of $0.39. Revenue for the quarter came in at $534 million versus the consensus estimate of $533.2 million.

• Net Sales of $534.0 million; Commercial Net Sales up 3%
• Gross Profit of $83.1 Million
• Gross Profit Margin Improved 20 Basis Points to a First Quarter Record 15.6%
• Diluted EPS Increased 52% to a First Quarter Record $0.35
• Non-GAAP Adjusted EPS Increased 35% to $0.46
• Generated Cash Flow from Operations of $17.6 Million

Frank Khulusi, Chairman and CEO of PCM, Inc., stated, “2019 is off to a strong start. We grew our adjusted EPS by 35% to $0.46. Our commercial segment sales grew by 3% even though we exited certain non-strategic lower margin sales as anticipated and despite the quarter having one less shipping day. I’m also pleased with the gross margin improvement of 20 basis points to a first quarter record 15.6%, driven by the increase in sales from our higher margin Commercial segment, as well as an increase in higher margin solutions sales. Our team also maintained a strong focus on tight expense management, which drove a 3% reduction in SG&A. Further, after coming off a great year of cash flow in 2018, we drove an additional $18 million in cash flow from operations. Our first quarter results affirm the effectiveness of our strategy to leverage our investments and further optimize our sales mix, while managing our costs in order to drive shareholder value.”

Commenting on PCM’s outlook for 2019, Khulusi concluded, “We believe we are well on our way towards a record 2019. Our Q1 results strongly support our full year guidance for adjusted EPS in the range of $2.55 to $2.75, with full year gross profit growth in the mid-single digit range on low-single digit net revenue growth.”

Frank Khulusi, Chairman and CEO of PCM, Inc., stated, “2019 is off to a strong start. We grew our adjusted EPS by 35% to $0.46. Our commercial segment sales grew by 3% even though we exited certain non-strategic lower margin sales as anticipated and despite the quarter having one less shipping day. I’m also pleased with the gross margin improvement of 20 basis points to a first quarter record 15.6%, driven by the increase in sales from our higher margin Commercial segment, as well as an increase in higher margin solutions sales. Our team also maintained a strong focus on tight expense management, which drove a 3% reduction in SG&A. Further, after coming off a great year of cash flow in 2018, we drove an additional $18 million in cash flow from operations. Our first quarter results affirm the effectiveness of our strategy to leverage our investments and further optimize our sales mix, while managing our costs in order to drive shareholder value.”

Commenting on PCM’s outlook for 2019, Khulusi concluded, “We believe we are well on our way towards a record 2019. Our Q1 results strongly support our full year guidance for adjusted EPS in the range of $2.55 to $2.75, with full year gross profit growth in the mid-single digit range on low-single digit net revenue growth.”

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

You May Also Be Interested In

• BofA sees Micron EPS topping $230 by FY30, calls peak fears overblown
• Bitmine reports 5.82 million ETH holdings, $11.4B total assets
• BofA Securities Reiterates Buy Rating on Micron Technology (MU); Sees $230+ in EPS by FY30