What caused CNXN's EPS surprise in Q2 2024?

The EPS of CNXN in Q2 2024 was not expectedly negative, as the most recent EPS was $0.12 below the expected value. PC Connection's (CNXN) EPS miss in Q2 2024 can be attributed to several key factors:

1. **Revenue Shortfall**: The company's revenue fell short of expectations, with reported revenue of $632.03 million in Q2 2024, compared to the estimated $694.19 million. This decline in revenue likely contributed to the lower-than-expected earnings.
2. **Strategic Initiatives**: Despite the revenue shortfall, PC Connection has been actively pursuing strategic initiatives to bolster future growth. These initiatives include gross margin improvements and strategic acquisitions. However, the impact of these initiatives may not have been fully realized in Q2 2024, leading to the EPS miss.
3. **Macroeconomic Challenges**: PC Connection has attributed its revenue downturn to delayed IT capital spending by customers amid a challenging macroeconomic environment. This suggests that broader economic factors may have played a role in the company's financial performance during the quarter.

In summary, CNXN's EPS surprise in Q2 2024 was likely a result of a combination of revenue shortfall, strategic initiatives and macroeconomic challenges.

|code|Ticker|Name|Date|Estimate EPS|EPS Surprise|market_code|
|---|---|---|---|---|---|---|
|CNXN|CNXN.O|PC Connection|2024 Q1|0.63|-0.13|185|
|CNXN|CNXN.O|PC Connection|2024 Q2|0.83|0.17|185|
|CNXN|CNXN.O|PC Connection|2024 Q3|1|-0.03|185|
|CNXN|CNXN.O|PC Connection|2024 Q4|0.9|-0.12|185|