What factors could impact CNXN's future EPS performance?

Several factors could impact CNXN's future EPS performance:

1. **Revenue Growth**: CNXN's EPS is influenced by its total revenue. A increase in revenue, as seen in FY 2024 with a 1.6% rise to $519.8 million, can positively contribute to EPS growth. However, Q4 revenue growth was modest at 1.8% year-over-year, which may not significantly impact EPS in the short term.
2. **Gross Margin Improvement**: The company's gross margin has shown fluctuations, decreasing by 30 basis points to 18.3% in Q4 compared to the previous year. Any improvement in gross margin, as seen in the full-year scenario with a 60 basis point increase to 18.6%, could positively affect EPS.
3. **Operating Income**: CNXN's operating income decreased by 19% in Q4, indicating a challenge for EPS growth. Future improvements or declines in operating income will directly impact EPS.
4. **Investment in Resources**: The company has increased SG&A expenses by 4%, which could temporarily strain EPS if revenue does not keep pace. However, these investments are aimed at strengthening sales and services capabilities, potentially benefiting EPS in the long run.
5. **Product Mix and Shift**: The improvement in gross margin was largely driven by a shift in product mix and an increase in the mix of software recognized on a net basis. This strategic shift could positively impact EPS if high-margin products contribute more significantly to revenue.
6. **Dividend Repurchases**: CNXN has a history of share repurchases, with a recent repurchase of common stock amounting to -$4.64 million. Dividend repurchases can impact EPS by reducing the number of shares and potentially increasing per-share earnings.
7. **Market Conditions and Demand**: The market for IT products and solutions is expected to improve gradually. Favorable market conditions and increasing demand for CNXN's services could boost revenue and EPS.

In conclusion, CNXN's future EPS performance will likely be influenced by its revenue growth, gross margin improvements, operating income changes, and strategic investments. Additionally, the company's product mix, dividend repurchases, and market conditions will play a role in determining its EPS trajectory.