Connection (CNXN) Reports Q3: Everything You Need To Know Ahead Of Earnings

IT solutions provider Connection will be announcing earnings results this Wednesday after market hours. Here’s what you need to know. Connection missed analysts’ revenue expectations by 0.6% last quarter, reporting revenues of $759.7 million, up 3.2% year on year. It was a satisfactory quarter for the company, with a beat of analysts’ EPS estimates but a slight miss of analysts’ revenue estimates. Is Connection a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.This quarter, analysts are expecting Connection’s revenue to grow 2.6% year on year to $743.7 million, slowing from the 4.6% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $1.01 per share. Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Connection has only missed Wall Street’s revenue estimates once since going public and has exceeded top-line expectations by 4% on average. Looking at Connection’s peers in the tech hardware & electronics segment, some have already reported their Q3 results, giving us a hint as to what we can expect. TD SYNNEX delivered year-on-year revenue growth of 6.6%, beating analysts’ expectations by 3.5%, and Amphenol reported revenues up 53.4%, topping estimates by 10.9%. TD SYNNEX traded up 9.5% following the results while Amphenol was also up 8.8%. Read our full analysis of TD SYNNEX’s results here and Amphenol’s results here.Investors in the tech hardware & electronics segment have had steady hands going into earnings, with share prices up 1.3% on average over the last month. Connection’s stock price was unchanged during the same time and is heading into earnings with an average analyst price target of $76 (compared to the current share price of $62.07).When a company has more cash than it knows what to do with, buying back its own shares can make a lot of sense–as long as the price is right. Luckily, we’ve found one, a low-priced stock that is gushing free cash flow AND buying back shares. StockStory is growing and hiring equity analyst and marketing roles. Are you a 0 to 1 builder passionate about the markets and AI? See the open roles here.