A week ago, PC Connection, Inc. (NASDAQ:CNXN) came out with a strong set of second-quarter numbers that could potentially lead to a re-rate of the stock. PC Connection delivered a significant beat to revenue and earnings per share (EPS) expectations, hitting US$854m-11% above indicated-andUS$1.31-24% above forecasts- respectively The analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.

Following the latest results, PC Connection's two analysts are now forecasting revenues of US$3.11b in 2026. This would be a credible 4.1% improvement in revenue compared to the last 12 months. Per-share earnings are expected to accumulate 7.6% to US$4.09. Yet prior to the latest earnings, the analysts had been anticipated revenues of US$3.00b and earnings per share (EPS) of US$3.84 in 2026. It looks like there's been a modest increase in sentiment following the latest results, withthe analysts becoming a bit more optimistic in their predictions for both revenues and earnings.

With these upgrades, we're not surprised to see that the analysts have lifted their price target 9.2% to US$83.00per share.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the PC Connection's past performance and to peers in the same industry. One thing stands out from these estimates, which is that PC Connection is forecast to grow faster in the future than it has in the past, with revenues expected to display 8.3% annualised growth until the end of 2026. If achieved, this would be a much better result than the 0.5% annual decline over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to see their revenue grow 14% per year. Although PC Connection's revenues are expected to improve, it seems that the analysts are still bearish on the business, forecasting it to grow slower than the broader industry.

The Bottom Line

The biggest takeaway for us is the consensus earnings per share upgrade, which suggests a clear improvement in sentiment around PC Connection's earnings potential next year. Fortunately, they also upgraded their revenue estimates, although our data indicates it is expected to perform worse than the wider industry. There was also a nice increase in the price target, with the analysts clearly feeling that the intrinsic value of the business is improving.

Following on from that line of thought, we think that the long-term prospects of the business are much more relevant than next year's earnings. At least one analyst has provided forecasts out to 2027, which can be seen for free on our platform here.

We also provide an overview of the PC Connection Board and CEO remuneration and length of tenure at the company, and whether insiders have been buying the stock, here.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.