Here's What You Should Know Ahead of CDW's Q4 Earnings Release
CDW Corporation CDW is slated to report fourth-quarter 2022 results on Feb 8.
The Zacks Consensus Estimate for revenues is pegged at $6.15 billion, suggesting growth of 11.1% from the year-ago quarter’s reported figure. The Zacks Consensus Estimate for earnings is pegged at $2.45 per share, indicating an increase of 17.8% from $2.08 recorded in the year-ago quarter.
CDW’s earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, the average surprise being 6.6%.
Factors to Note
The ongoing demand for CDW's hardware and software products, as well as integrated IT solutions, including mobility, security, data center optimization, virtualization and cloud computing, is likely to have helped the company's fourth-quarter performance.
CDW Corporation Price and EPS Surprise
CDW Corporation price-eps-surprise | CDW Corporation Quote
The company is expected to gain as corporations spend more on security and cloud migration as more people are shifting to remote jobs or a hybrid work environment. In the last reported quarter, CDW noted that both professional and managed services posted double-digit growth. The company’s widespread footprint, which includes its presence in the United States, U.K. and Canada, is likely to have acted as a tailwind.
CDW is also working to improve its capabilities to attract new customers. The fourth-quarter performance is likely to have benefited from increasing Healthcare and Government customers and increased revenues from federal customers.
CDW's approach of encouraging organic growth and pursuing buyouts is likely to have raised the company's profile. Buyouts like Amplified IT and Focal Point Data Risk have helped to improve its educational and security capabilities, respectively.
Global macroeconomic weakness, forex volatility, global supply-chain glitches and component shortages might have dented the to-be-reported quarter’s performance. Rising inflation is likely to have led to increasing expenses, which is expected to weigh on the company’s profitability.
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.
CDW has an Earnings ESP of 0.00% and a Zacks Rank #2. 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 a few stocks that you may want to consider, as our model shows that these have the right combination of elements to post an earnings beat this quarter.
Expedia Group EXPE has an Earnings ESP of +7.34% and presently carries a Zacks Rank #1. The company is slated to release quarterly numbers on Feb 9. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for EXPE’s to-be-reported quarter’s earnings and revenues are pegged at $2.68 per share and $1.85 billion, respectively. Shares of the company have lost 37% of their value in the past year.
Onto Innovation ONTO has an Earnings ESP of +4.22% and presently carries a Zacks Rank #3. The company is slated to release quarterly numbers on Feb 9.
The Zacks Consensus Estimate for Onto Innovation’s to-be-reported quarter’s earnings and revenues are pegged at $1.34 per share and $255 million, respectively. Shares of ONTO have lost 4.7% in the past year.
Perion Network PERI has an Earnings ESP of +13.4% and presently carries a Zacks Rank #3. The company is slated to release quarterly numbers on Feb 8.
The Zacks Consensus Estimate for Perion Network’s to-be-reported quarter’s earnings and revenues are pegged at 70 cents per share and $205.1 million, respectively. Shares of PERI have gained 58.8% in the past year.
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Expedia Group, Inc. (EXPE) : Free Stock Analysis Report
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