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CDW Corp (CDW) to Report Q3 Earnings: What's in Store?

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CDW Corporation (CDW - Free Report) is set to report third-quarter 2020 results on Nov 2.

The Zacks Consensus Estimate for quarterly revenues is pinned at $4.54 billion, indicating a 7.5% year-over-year decline. The consensus mark for earnings is pegged at $1.48 per share, suggesting a 12.9% 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 7.5%.

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

Factors at Play

CDW’s third-quarter performance is 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, might 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 aided the company during the quarter under review.

CDW’s strategy to support organic growth, alongside acquisitions, is also likely to have strengthened the company’s 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 predicts 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. You can uncover the best stocks to buy or sell, before they’re reported, with our Earnings ESP Filter.

CDW currently sports a Zacks Rank of 1 and has an Earnings ESP of +6.76%.

Other Stocks With Favorable Combinations

Here are some other companies, which, per our model, have the right combination of elements to post an earnings beat in their upcoming releases:

Vishay Intertechnology, Inc. (VSH - Free Report) has an Earnings ESP of +6.45% and flaunts a Zacks Rank of 1, at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

Alphabet (GOOGL - Free Report) has an Earnings ESP of +7.40% and carries a Zacks Rank of 2, currently.

AMETEK, Inc. (AME - Free Report) has an Earnings ESP of +0.83% and currently carries a Zacks Rank of 3.

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