PCM, Inc. (PCMI) Reports Q4 EPS of $0.17, Miss on Revenues; Offers FY18 EPS Outlook Above Consensus

March 7, 2018 4:15 PM

Note: EPS may not be comparable

PCM, Inc. (NASDAQ: PCMI) reported Q4 EPS of $0.17, versus $0.56 reported last year. Revenue for the quarter came in at $563.4 million versus the consensus estimate of $580.75 million.

Fourth Quarter 2017 compared to Fourth Quarter 2016:


Commenting on PCM’s 2018 Outlook, Khulusi stated, “I believe PCM is very well positioned for the future. We expect 2018 to be a record year in sales, gross profit and adjusted EPS, with the major headwinds that impacted our 2017 top line growth behind us and as we expect to begin to reap the benefits of our 2017 investments in security, cloud, hybrid data center and managed services. We are forecasting 2018 revenue growth of approximately 5% over 2017, which is above projected IT spending growth rates. 2018 is off to a good start, with growth for the first two months in line with this forecast, including a return to growth in gross billings for our public sector segment. Gross margin is expected to remain at the increased levels we achieved in 2017 as we continue our focus on sales of advanced solutions and services. SG&A expenses as a percentage of sales are expected to decline significantly, realizing the effect of our optimization efforts, tight expense management and leverage on incremental sales. As such, we are forecasting non-GAAP earnings per share in 2018 to grow significantly and be in the range of $2.00 - $2.10, including the results of the UK segment.”

Khulusi concluded, “With respect to our new UK segment, it continues to grow rapidly and capture the attention of vendors, customers and competitors in this important market. Having taken advantage of a market opportunity to hire numerous experienced sales people in Q4 as we previously stated, Q4 was our peak investment period from an income statement impact standpoint. We are very pleased to share that January was our first month with the UK segment operating results near break-even. This important milestone for a startup was reached eight months from our launch date. We are confident in our trajectory for our UK business and we currently expect at least a $1 million improvement from the fourth quarter in our UK bottom line in Q1 and continue to expect full year profit for 2018.”


PCM, Inc. sees FY2018 EPS of $2.00-$2.10, versus the consensus of $1.56.

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


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