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CDW Gears Up to Report Q2 Earnings: What's in the Offing?
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CDW Corporation (CDW - Free Report) is slated to report second-quarter 2024 results on Jul 31, before the market opens.
The Zacks Consensus Estimate for revenues is pegged at $5.45 billion, suggesting a decline of 3.21% from the year-ago quarter’s reported figure. The consensus estimate for earnings is pegged at $2.52 per share, indicating a decrease of 1.56% from the year-ago quarter’s reported figure.
CDW’s earnings missed the Zacks Consensus Estimate in the last quarter but surpassed in the earlier three quarters. The average surprise of the trailing four quarters currently stands at 0.8%.
A slowdown across all business segments is likely to have hampered its top-line performance. Conservative customer approach owing to elevated macro volatility is expected to have been a headwind. The dynamic IT landscape and the rising advent of AI resulted in delays in customer decision-making. Federal channel revenues are affected by the congressional budget impact.
Nonetheless, customer spending preferences, including cost optimization, data protection and workforce productivity, are driving security and cloud revenues. Sales from the storage category business are likely to have gained from higher spending by clients on efficiency improvement amid exponential data and workload growth. We expect revenues from Data Storage and Servers to increase 8% to $579 million in the to-be-reported quarter.
CDW has a diverse customer base across business, government, education and healthcare sectors in the United States, the United Kingdom and Canada, which provides a robust foundation amid macroeconomic fluctuations.
Also, increasing traction witnessed in the recently launched AI consulting services, namely AI discovery and Master Operational AI Transition, or MOAT, is expected to have acted as a tailwind.
In the first quarter, revenues from Corporate, Small Business, Education and Healthcare declined 3.1%, 7.4%, 10.4% and 1.8%, respectively. For the second quarter, we expect revenues from Corporate, Small Business and Healthcare to be $2161.7 million, $389.1 million and $544.4 million, down 3.7%, 1.8% and 7.3%, respectively. Revenues from the Education sector are estimated to be up 3.8% to $1065.8 million.
What Our Model Says
Our proven model does not predict an earnings beat for CDW this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. That is not the case here.
CDW has an Earnings ESP of 0.00% and a Zacks Rank #4 (Sell). You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Stocks With Favorable Combination
Here are some other stocks you may consider, as our proven model shows that these have the right mix of elements to beat estimates this time around.
The Zacks Consensus Estimate for PINS’s to-be-reported quarter’s EPS and revenues is pegged at 28 cents per share and $847.8 million, respectively. Shares of PINS have gained 9.5% in the past year.
The Earnings ESP for Silicon Motion Technology Corporation (SIMO - Free Report) is +2.66%, and it sports a Zacks Rank of 1. The company is scheduled to report quarterly numbers on Aug 1.
The Zacks Consensus Estimate for SIMO’s to-be-reported quarter’s EPS and revenues is pegged at 95 cents per share and $207.6 million, respectively. Shares of SIMO have gained 9.5% in the past year.
The Earnings ESP for Arista Networks, Inc. (ANET - Free Report) is +1.72%, and it sports a Zacks Rank of 1. The company is scheduled to report quarterly numbers on Jul 30.
The Zacks Consensus Estimate for ANET’s to-be-reported quarter’s EPS and revenues is pegged at $1.94 and $1.64 billion, respectively. Shares of ANET have gained 9.5% in the past year.
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CDW Gears Up to Report Q2 Earnings: What's in the Offing?
CDW Corporation (CDW - Free Report) is slated to report second-quarter 2024 results on Jul 31, before the market opens.
The Zacks Consensus Estimate for revenues is pegged at $5.45 billion, suggesting a decline of 3.21% from the year-ago quarter’s reported figure. The consensus estimate for earnings is pegged at $2.52 per share, indicating a decrease of 1.56% from the year-ago quarter’s reported figure.
CDW’s earnings missed the Zacks Consensus Estimate in the last quarter but surpassed in the earlier three quarters. The average surprise of the trailing four quarters currently stands at 0.8%.
CDW Corporation Price and EPS Surprise
CDW Corporation price-eps-surprise | CDW Corporation Quote
Factors at Play
A slowdown across all business segments is likely to have hampered its top-line performance. Conservative customer approach owing to elevated macro volatility is expected to have been a headwind. The dynamic IT landscape and the rising advent of AI resulted in delays in customer decision-making. Federal channel revenues are affected by the congressional budget impact.
Nonetheless, customer spending preferences, including cost optimization, data protection and workforce productivity, are driving security and cloud revenues. Sales from the storage category business are likely to have gained from higher spending by clients on efficiency improvement amid exponential data and workload growth. We expect revenues from Data Storage and Servers to increase 8% to $579 million in the to-be-reported quarter.
CDW has a diverse customer base across business, government, education and healthcare sectors in the United States, the United Kingdom and Canada, which provides a robust foundation amid macroeconomic fluctuations.
Also, increasing traction witnessed in the recently launched AI consulting services, namely AI discovery and Master Operational AI Transition, or MOAT, is expected to have acted as a tailwind.
In the first quarter, revenues from Corporate, Small Business, Education and Healthcare declined 3.1%, 7.4%, 10.4% and 1.8%, respectively. For the second quarter, we expect revenues from Corporate, Small Business and Healthcare to be $2161.7 million, $389.1 million and $544.4 million, down 3.7%, 1.8% and 7.3%, respectively. Revenues from the Education sector are estimated to be up 3.8% to $1065.8 million.
What Our Model Says
Our proven model does not predict an earnings beat for CDW this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. That is not the case here.
CDW has an Earnings ESP of 0.00% and a Zacks Rank #4 (Sell). You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Stocks With Favorable Combination
Here are some other stocks you may consider, as our proven model shows that these have the right mix of elements to beat estimates this time around.
Pinterest (PINS - Free Report) is set to release quarterly numbers on Jul 30. It has an Earnings ESP of +7.14% and a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for PINS’s to-be-reported quarter’s EPS and revenues is pegged at 28 cents per share and $847.8 million, respectively. Shares of PINS have gained 9.5% in the past year.
The Earnings ESP for Silicon Motion Technology Corporation (SIMO - Free Report) is +2.66%, and it sports a Zacks Rank of 1. The company is scheduled to report quarterly numbers on Aug 1.
The Zacks Consensus Estimate for SIMO’s to-be-reported quarter’s EPS and revenues is pegged at 95 cents per share and $207.6 million, respectively. Shares of SIMO have gained 9.5% in the past year.
The Earnings ESP for Arista Networks, Inc. (ANET - Free Report) is +1.72%, and it sports a Zacks Rank of 1. The company is scheduled to report quarterly numbers on Jul 30.
The Zacks Consensus Estimate for ANET’s to-be-reported quarter’s EPS and revenues is pegged at $1.94 and $1.64 billion, respectively. Shares of ANET have gained 9.5% in the past year.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.