PCM, Inc. Reports Unaudited Consolidated Earnings Results for the First Quarter Ended March 31, 2017; Provides Earnings Guidance for the Year 2017
The company expects adjusted EPS, which excludes the UK investment, in the range of $0.44 to $0.49 on net sales of $580 million to $600 million, which continues to exclude sales under the transferred customer. For the year, the company continues to believe that it will deliver net sales of $2.34 billion to $2.38 billion and adjusted EPS of $2.00 to $2.15, with adjusted EPS ramping sequentially for each of the quarters of this year. The company raised gross margin guidance from a range of 13.75% to 14.25% to a range of 14.0% to 14.5% for each of the remaining quarters in 2017. The company expects that annual effective tax rate to be approximately 35.6%. Further, the company's current plan is to spend approximately $4.0 million launching its UK business in 2017, with some offset generated by incremental revenue and gross profit, and believe that its UK operations will be profitable and accretive in 2018.