CDW Corporation ( CDW Quick Quote CDW - Free Report) is slated to report third-quarter 2022 results on Nov 2.
The Zacks Consensus Estimate for revenues is pegged at $6.21 billion, suggesting growth of 17.2% from the year-ago quarter’s reported figure. The consensus mark for earnings is pegged at $2.52 per share, indicating an increase of 18.3% from $2.13 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 6.8%.
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 third-quarter performance. 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.
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 customer spending increased by 20%, which is expected to continue in the third quarter. The rise can be attributed to customers spending more on upgrade, optimization and security of their applications.
CDW is also working to improve its capabilities to attract new customers. The third-quarter performance is likely to benefit from increasing Healthcare and Government customers and increased revenue 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.
However, pandemic-induced global supply-chain troubles and component shortages might have dented the to-be-reported quarter’s performance. Increasing expenses might have acted as another headwind.
What Our Model Says
Our proven model predicts 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 +0.31% and a Zacks Rank #3. You can uncover the best stocks to buy or sell before they’re reported with our
Earnings ESP Filter. Other Stocks With Favorable Combination
Here are some other stocks you may consider, as our proven model shows that these too have the right mix of elements to beat estimates this time around.
United States Cellular ( USM Quick Quote USM - Free Report) has an Earnings ESP of +47.46% and currently has a Zacks Rank #1. United States Cellular is scheduled to report earnings on Nov 4. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for United States Cellular’s to-be-reported quarter’s earnings and revenues is pegged at 20 cents per share and $1.03 billion, respectively. United States Cellular surpassed earnings estimates in three of the preceding four quarters, delivering an average surprise of 27.6%. Shares of USM lost 1.8% in the past year.
Marriott International ( MAR Quick Quote MAR - Free Report) has an Earnings ESP of +1.55% and currently has a Zacks Rank #1. Marriott International is scheduled to report earnings on Nov 3.
The Zacks Consensus Estimate for Marriott International’s to-be-reported quarter’s earnings and revenues is pegged at $1.69 per share and $5.27 billion, respectively. Marriott International surpassed earnings estimates in the preceding four quarters, delivering an average surprise of 18.6%. Shares of MAR lost 1.4% in the past year.
SPX Technologies ( SPXC Quick Quote SPXC - Free Report) has an Earnings ESP of +1.01% and currently has a Zacks Rank #2. SPX Technologies is scheduled to report earnings on Nov 3.
The Zacks Consensus Estimate for SPX Technologies to-be-reported quarter’s earnings and revenues is pegged at 66 cents per share and $352 million, respectively. SPX Technologies surpassed earnings estimates in three of the preceding four quarters, delivering an average surprise of 9.1%. Shares of SPXC increased 12.4% in the past year.
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