We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
CDW to Report Q2 Earnings: What's in Store for the Stock?
Read MoreHide Full Article
CDW Corporation (CDW - Free Report) is slated to release second-quarter 2019 results on Jul 31.
The company’s earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, the average being 8.91%.
In the first quarter, the company’s non-GAAP earnings rose 18.2% year over year to $1.24 and also surpassed the Zacks Consensus Estimate of $1.10.
Additionally, revenues of $3.96 billion marked a year-over-year rise of 9.7% and topped the Zacks Consensus Estimate of $3.77 billion as well. Moreover, the top line was up 12.4% in constant currency (cc).
The Zacks Consensus Estimate for second-quarter revenues is currently pegged at $4.49 billion, indicating 7.24% growth from the year-ago reported figure. Further, the consensus mark for earnings has been stable at $1.51 over the past 60 days.
Factors to Impact Q2 Results
CDW’s second-quarter results are likely to be driven by the company’s balanced portfolio of customer end-markets and the breadth of its product and solutions pipeline.
The company is also expected to benefit from strong growth in the international markets this June quarter.
Moreover, the recent acquisition of Scalar, which performed in line with the company’s expectations in the last reported quarter, is expected to be accretive in the second quarter as well.
However, earlier-than-expected federal deal closings in the March quarter might decelerate revenue growth in the June quarter, which make us apprehensive about the stock’s prospects.
This apart, adverse foreign currency fluctuations and macroeconomic perils persist as a key threat. Also, the highly competitive environment is a major concern this earnings season.
The proven Zacks model clearly shows that a company with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) has maximum chances of beating estimates if it also has a positive Earnings ESP. Zacks Rank #4 (Sell) or 5 (Strong Sell) stocks are best avoided. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
CDW currently carries a Zacks Rank of 5 and an Earnings ESP of 0.00%, which make surprise prediction unlikely for the stock this reporting cycle.
Stocks to Consider
Here are some stocks worth considering as our model shows that these have the right combination of elements to beat on earnings in their upcoming releases:
CGI Group, Inc. (GIB - Free Report) has an Earnings ESP of +1.27% and a Zacks Rank of 2.
GTT Communications, Inc. has an Earnings ESP of +144.44% and a Zacks Rank #3.
Biggest Tech Breakthrough in a Generation
Be among the early investors in the new type of device that experts say could impact society as much as the discovery of electricity. Current technology will soon be outdated and replaced by these new devices. In the process, it’s expected to create 22 million jobs and generate $12.3 trillion in activity.
A select few stocks could skyrocket the most as rollout accelerates for this new tech. Early investors could see gains similar to buying Microsoft in the 1990s. Zacks’ just-released special report reveals 7 stocks to watch. The report is only available for a limited time.
Image: Bigstock
CDW to Report Q2 Earnings: What's in Store for the Stock?
CDW Corporation (CDW - Free Report) is slated to release second-quarter 2019 results on Jul 31.
The company’s earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, the average being 8.91%.
In the first quarter, the company’s non-GAAP earnings rose 18.2% year over year to $1.24 and also surpassed the Zacks Consensus Estimate of $1.10.
Additionally, revenues of $3.96 billion marked a year-over-year rise of 9.7% and topped the Zacks Consensus Estimate of $3.77 billion as well. Moreover, the top line was up 12.4% in constant currency (cc).
The Zacks Consensus Estimate for second-quarter revenues is currently pegged at $4.49 billion, indicating 7.24% growth from the year-ago reported figure. Further, the consensus mark for earnings has been stable at $1.51 over the past 60 days.
Factors to Impact Q2 Results
CDW’s second-quarter results are likely to be driven by the company’s balanced portfolio of customer end-markets and the breadth of its product and solutions pipeline.
The company is also expected to benefit from strong growth in the international markets this June quarter.
Moreover, the recent acquisition of Scalar, which performed in line with the company’s expectations in the last reported quarter, is expected to be accretive in the second quarter as well.
However, earlier-than-expected federal deal closings in the March quarter might decelerate revenue growth in the June quarter, which make us apprehensive about the stock’s prospects.
This apart, adverse foreign currency fluctuations and macroeconomic perils persist as a key threat. Also, the highly competitive environment is a major concern this earnings season.
CDW Corporation Price and EPS Surprise
CDW Corporation price-eps-surprise | CDW Corporation Quote
What Our Model Says
The proven Zacks model clearly shows that a company with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) has maximum chances of beating estimates if it also has a positive Earnings ESP. Zacks Rank #4 (Sell) or 5 (Strong Sell) stocks are best avoided. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
CDW currently carries a Zacks Rank of 5 and an Earnings ESP of 0.00%, which make surprise prediction unlikely for the stock this reporting cycle.
Stocks to Consider
Here are some stocks worth considering as our model shows that these have the right combination of elements to beat on earnings in their upcoming releases:
Ciena Corporation (CIEN - Free Report) has an Earnings ESP of +5.26% and a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.
CGI Group, Inc. (GIB - Free Report) has an Earnings ESP of +1.27% and a Zacks Rank of 2.
GTT Communications, Inc. has an Earnings ESP of +144.44% and a Zacks Rank #3.
Biggest Tech Breakthrough in a Generation
Be among the early investors in the new type of device that experts say could impact society as much as the discovery of electricity. Current technology will soon be outdated and replaced by these new devices. In the process, it’s expected to create 22 million jobs and generate $12.3 trillion in activity.
A select few stocks could skyrocket the most as rollout accelerates for this new tech. Early investors could see gains similar to buying Microsoft in the 1990s. Zacks’ just-released special report reveals 7 stocks to watch. The report is only available for a limited time.
See 7 breakthrough stocks now>>