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What You Should Know Ahead of CDW's Q4 Earnings Release
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CDW Corporation (CDW - Free Report) is slated to report fourth-quarter 2023 results on Feb 7.
The Zacks Consensus Estimate for revenues is pegged at $5.36 billion, suggesting a decline of 1.5% from the year-ago quarter’s reported figure. The consensus estimate for earnings is pegged at $2.57 per share, indicating an increase of 2.8% 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 4.4%.
CDW’s fourth-quarter performance is expected to have benefited from its balanced portfolio of customer end markets, breadth of solutions and services portfolio coupled with the ongoing execution of its three-part strategy.
Solid momentum across cloud, NetComm, storage, software, and security is an added tailwind. Our estimate for NetComm products is pegged at $825.9 million, indicating a year-over-year rise of 1.1%. Increasing security spend to tackle cybersecurity needs is likely to have boosted its top line.
The government business segment is likely to have benefited from increased expenditure by the federal government on complex services that enable hybrid infrastructure and cloud opportunities. The company’s widespread footprint, which includes its presence in the United States, the 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 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. This is not the case here, as you see below.
CDW has an Earnings ESP of 0.00% 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 WTS’ to-be-reported quarter’s earnings and revenues is pegged at $1.78 per share and $532.4 million, respectively. Shares of WTS have gained 20.1% in the past year.
InterDigital, Inc (IDCC - Free Report) has an Earnings ESP of +1.93% and presently carries a Zacks Rank #2. IDCC is slated to release quarterly numbers on Feb 15.
The Zacks Consensus Estimate for IDCC’s to-be-reported quarter’s earnings and revenues is pegged at $1.21 per share and $104.3 million, respectively. Shares of IDCC have rallied 49.9% in the past year.
Shopify Inc (SHOP - Free Report) has an Earnings ESP of +1.02% and currently sports a Zacks Rank #1. SHOP is scheduled to report quarterly earnings on Feb 13.
The Zacks Consensus Estimate for SHOP’s to-be-reported quarter’s earnings and revenues is pegged at 31 cents per share and $2.07 billion, respectively. Shares of SHOP have plunged 60.9% in the past year.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
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What You Should Know Ahead of CDW's Q4 Earnings Release
CDW Corporation (CDW - Free Report) is slated to report fourth-quarter 2023 results on Feb 7.
The Zacks Consensus Estimate for revenues is pegged at $5.36 billion, suggesting a decline of 1.5% from the year-ago quarter’s reported figure. The consensus estimate for earnings is pegged at $2.57 per share, indicating an increase of 2.8% 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 4.4%.
CDW Corporation Price and EPS Surprise
CDW Corporation price-eps-surprise | CDW Corporation Quote
Factors to Note
CDW’s fourth-quarter performance is expected to have benefited from its balanced portfolio of customer end markets, breadth of solutions and services portfolio coupled with the ongoing execution of its three-part strategy.
Solid momentum across cloud, NetComm, storage, software, and security is an added tailwind. Our estimate for NetComm products is pegged at $825.9 million, indicating a year-over-year rise of 1.1%. Increasing security spend to tackle cybersecurity needs is likely to have boosted its top line.
The government business segment is likely to have benefited from increased expenditure by the federal government on complex services that enable hybrid infrastructure and cloud opportunities. The company’s widespread footprint, which includes its presence in the United States, the 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 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. This is not the case here, as you see below.
CDW has an Earnings ESP of 0.00% 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.
Watts Water Technologies (WTS - Free Report) has an Earnings ESP of +0.87% and currently carries a Zacks Rank of 2. WTS is set to announce quarterly figures on Feb 12. You can see the complete list of today's Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for WTS’ to-be-reported quarter’s earnings and revenues is pegged at $1.78 per share and $532.4 million, respectively. Shares of WTS have gained 20.1% in the past year.
InterDigital, Inc (IDCC - Free Report) has an Earnings ESP of +1.93% and presently carries a Zacks Rank #2. IDCC is slated to release quarterly numbers on Feb 15.
The Zacks Consensus Estimate for IDCC’s to-be-reported quarter’s earnings and revenues is pegged at $1.21 per share and $104.3 million, respectively. Shares of IDCC have rallied 49.9% in the past year.
Shopify Inc (SHOP - Free Report) has an Earnings ESP of +1.02% and currently sports a Zacks Rank #1. SHOP is scheduled to report quarterly earnings on Feb 13.
The Zacks Consensus Estimate for SHOP’s to-be-reported quarter’s earnings and revenues is pegged at 31 cents per share and $2.07 billion, respectively. Shares of SHOP have plunged 60.9% in the past year.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.