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Here's What You Should Know Ahead of CDW's Q2 Earnings Release
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CDW Corporation (CDW - Free Report) is slated to report second-quarter 2023 results on Aug 2.
The Zacks Consensus Estimate for revenues is pegged at $5.4 billion, suggesting a decline of 12.1% from the year-ago quarter’s reported figure. The consensus estimate for earnings is pegged at $2.35 per share, indicating a decrease of 5.6% from the year-ago quarter’s reported figure.
CDW’s earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, the average surprise being 2.5%.
CDW’s second-quarter performance is expected to have benefited from solid momentum across cloud, NetComm, storage, software, and security. Our estimate for NetComm products is pegged at $717.6 million, showing a year-over-year rise of 1.8%.
The ongoing demand for CDW's hardware and software products, as well as integrated IT solutions, is likely to have acted as a tailwind. Our estimate for software products is pegged at $915.4 million, showing a year-over-year decline of 0.6%.
The healthcare business segment is likely to have gained from increased investments made to enhance patient care and experience. CDW is also working to improve its capabilities to attract new customers. The second-quarter performance is expected to have benefited from increasing Healthcare and Government customers and increased revenues from federal customers.
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.
Global macroeconomic weakness, forex volatility and global supply-chain glitches 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 conclusively 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. However, this is not the case here.
CDW has an Earnings ESP of -0.67% and a Zacks Rank #4 (Sell). 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.
The Zacks Consensus Estimate for PAYC’s to-be-reported quarter’s earnings and revenues is pegged at $1.60 per share and $398.2 million, respectively. Shares of PAYC have rallied 10.5% in the past year.
Rockwell Automation (ROK - Free Report) has an Earnings ESP of +1.03% and currently carries a Zacks Rank of 2. The company is scheduled to report quarterly numbers on Aug 1.
The Zacks Consensus Estimate for ROK’s to-be-reported quarter’s earnings and revenues is pegged at $3.19 per share and $2.3 billion, respectively. Shares of ROK have rallied 32.9% in the past year.
SPX Technologies (SPXC - Free Report) currently has an Earnings ESP of +1.59% and a Zacks Rank of 2. The company is scheduled to release its second-quarter results on Aug 2.
The Zacks Consensus Estimate for SPXC’s to-be-reported quarter’s earnings and revenues is pegged at 84 cents per share and $390.7 million, respectively. Shares of SPXC have rallied 40.5% in the past year.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
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Here's What You Should Know Ahead of CDW's Q2 Earnings Release
CDW Corporation (CDW - Free Report) is slated to report second-quarter 2023 results on Aug 2.
The Zacks Consensus Estimate for revenues is pegged at $5.4 billion, suggesting a decline of 12.1% from the year-ago quarter’s reported figure. The consensus estimate for earnings is pegged at $2.35 per share, indicating a decrease of 5.6% from the year-ago quarter’s reported figure.
CDW’s earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, the average surprise being 2.5%.
CDW Corporation Price and EPS Surprise
CDW Corporation price-eps-surprise | CDW Corporation Quote
Factors to Note
CDW’s second-quarter performance is expected to have benefited from solid momentum across cloud, NetComm, storage, software, and security. Our estimate for NetComm products is pegged at $717.6 million, showing a year-over-year rise of 1.8%.
The ongoing demand for CDW's hardware and software products, as well as integrated IT solutions, is likely to have acted as a tailwind. Our estimate for software products is pegged at $915.4 million, showing a year-over-year decline of 0.6%.
The healthcare business segment is likely to have gained from increased investments made to enhance patient care and experience. CDW is also working to improve its capabilities to attract new customers. The second-quarter performance is expected to have benefited from increasing Healthcare and Government customers and increased revenues from federal customers.
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.
Global macroeconomic weakness, forex volatility and global supply-chain glitches 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 conclusively 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. However, this is not the case here.
CDW has an Earnings ESP of -0.67% and a Zacks Rank #4 (Sell). 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.
Paycom Software (PAYC - Free Report) has an Earnings ESP of +1.88% and currently carries a Zacks Rank of 2. The company is scheduled to report quarterly numbers on Aug 1. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for PAYC’s to-be-reported quarter’s earnings and revenues is pegged at $1.60 per share and $398.2 million, respectively. Shares of PAYC have rallied 10.5% in the past year.
Rockwell Automation (ROK - Free Report) has an Earnings ESP of +1.03% and currently carries a Zacks Rank of 2. The company is scheduled to report quarterly numbers on Aug 1.
The Zacks Consensus Estimate for ROK’s to-be-reported quarter’s earnings and revenues is pegged at $3.19 per share and $2.3 billion, respectively. Shares of ROK have rallied 32.9% in the past year.
SPX Technologies (SPXC - Free Report) currently has an Earnings ESP of +1.59% and a Zacks Rank of 2. The company is scheduled to release its second-quarter results on Aug 2.
The Zacks Consensus Estimate for SPXC’s to-be-reported quarter’s earnings and revenues is pegged at 84 cents per share and $390.7 million, respectively. Shares of SPXC have rallied 40.5% in the past year.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.