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What's in Store for CDW Corp (CDW) This Earnings Season?

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CDW Corporation (CDW - Free Report) is set to report second-quarter 2020 results on Aug 5.

The Zacks Consensus Estimate for quarterly revenues is pinned at $4.32 billion, indicating a 6.7% year-over-year decline. The consensus mark for earnings is pegged at $1.35 per share, suggesting a 15.6% decrease, year on year.

The company’s earnings surpassed the Zacks Consensus Estimate in three of the trailing four quarters and came in line in the other, the average surprise being 5.1%.

 

Let’s see how things have shaped up for the upcoming announcement.

Factors at Play

CDW’s second-quarter results are likely to have been adversely impacted by the pandemic-induced business disruptions. Lower IT spending as organizations are pushing back their investments in big and expensive technology products, due to the global economic slowdown concerns amid the coronavirus crisis, is expected to have hurt the firm’s quarterly performance.

Nonetheless, the coronavirus-induced demand for advanced IT-service infrastructure solutions for remote working and digital healthcare services is anticipated to have positively impacted the company’s performance during the quarter under review.

CDW’s strategy to supplement organic growth, alongside acquisitions, is also anticipated to have strengthened the company profile significantly. The firm’s buyouts of Aptris and Scalar Decisions have been instrumental in enhancing its capabilities to solve customers’ business problems. This makes us optimistic about the upcoming results.

What Our Model Says

Our proven model does not predict an earnings beat for CDW this season. The combination of a positive Earnings ESP, and Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. But that’s not the case here. 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 4 (Sell) and has an Earnings ESP of +0.48%.

Stocks With Favorable Combinations

Here are some companies, which, per our model, have the right combination of elements to post an earnings beat this quarter:

Cogent Communications Holdings (CCOI - Free Report) has an Earnings ESP of +11.66% and carries a Zacks Rank of 2, at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

Synaptics (SYNA - Free Report) has an Earnings ESP of +10.6 % and currently carries a Zacks Rank of 2.

Benefitfocus has an Earnings ESP of +6.25% and carries a Zacks Rank of 2, currently.

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