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What You Should Know Ahead of CDW's Q1 Earnings Release
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CDW Corporation (CDW - Free Report) is slated to report first-quarter 2024 results on May 1.
The Zacks Consensus Estimate for revenues is pegged at $4.94 billion, suggesting a decline of 3.3% from the year-ago quarter’s reported figure. The consensus estimate for earnings is pegged at $2.16 per share, indicating an increase of 6.4% 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 3.9%.
CDW’s first-quarter performance is expected to have benefited from rising software and cloud spending benefits owing to rising customer demand for projects with shorter-term return on investment.
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. Increasing security spend to tackle cybersecurity needs is expected 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. Also, increasing adoption of generative AI bodes well.
However, Netcomm sales are likely to have been affected due to “longer than expected” normalization of backlog. Our estimate for NetComm products is pegged at $726.4 million, indicating a year-over-year decline of 2.4%.
Continued economic uncertainty has led customers to focus on operating efficiency and expense elasticity. This is likely to have negatively impacted the company’s top-line performance. Rising inflation has led to an increase in expenses, which is expected to have weighed on the company’s profitability.
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 +0.46% 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 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 QCOM’s to-be-reported quarter’s earnings and revenues is pegged at $2.30 per share and $9.32 billion, respectively. Shares of QCOM have gained 46.7% in the past year.
Silicon Motion Technology Corporation (SIMO - Free Report) has an Earnings ESP of +5.96% and presently carries a Zacks Rank #2. SIMO is slated to release quarterly numbers on May 2.
The Zacks Consensus Estimate for SIMO’s to-be-reported quarter’s earnings and revenues is pegged at 58 cents per share and $179.8 million, respectively. Shares of SIMO have gained 20.9% in the past year.
Flex (FLEX - Free Report) has an Earnings ESP of +1.36% and presently carries a Zacks Rank #3. FLEX is slated to release quarterly numbers on May 1.
The Zacks Consensus Estimate for FLEX’s to-be-reported quarter’s earnings and revenues is pegged at 55 cents per share and $6.1 billion, respectively. Shares of FLEX have gained 87.5% 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 Q1 Earnings Release
CDW Corporation (CDW - Free Report) is slated to report first-quarter 2024 results on May 1.
The Zacks Consensus Estimate for revenues is pegged at $4.94 billion, suggesting a decline of 3.3% from the year-ago quarter’s reported figure. The consensus estimate for earnings is pegged at $2.16 per share, indicating an increase of 6.4% 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 3.9%.
CDW Corporation Price and EPS Surprise
CDW Corporation price-eps-surprise | CDW Corporation Quote
Factors to Note
CDW’s first-quarter performance is expected to have benefited from rising software and cloud spending benefits owing to rising customer demand for projects with shorter-term return on investment.
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. Increasing security spend to tackle cybersecurity needs is expected 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. Also, increasing adoption of generative AI bodes well.
However, Netcomm sales are likely to have been affected due to “longer than expected” normalization of backlog. Our estimate for NetComm products is pegged at $726.4 million, indicating a year-over-year decline of 2.4%.
Continued economic uncertainty has led customers to focus on operating efficiency and expense elasticity. This is likely to have negatively impacted the company’s top-line performance. Rising inflation has led to an increase in expenses, which is expected to have weighed on the company’s profitability.
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 +0.46% 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 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.
QUALCOMM Incorporated (QCOM - Free Report) has an Earnings ESP of +0.11% and currently carries a Zacks Rank of 2. QCOM is set to announce quarterly figures on May 1. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for QCOM’s to-be-reported quarter’s earnings and revenues is pegged at $2.30 per share and $9.32 billion, respectively. Shares of QCOM have gained 46.7% in the past year.
Silicon Motion Technology Corporation (SIMO - Free Report) has an Earnings ESP of +5.96% and presently carries a Zacks Rank #2. SIMO is slated to release quarterly numbers on May 2.
The Zacks Consensus Estimate for SIMO’s to-be-reported quarter’s earnings and revenues is pegged at 58 cents per share and $179.8 million, respectively. Shares of SIMO have gained 20.9% in the past year.
Flex (FLEX - Free Report) has an Earnings ESP of +1.36% and presently carries a Zacks Rank #3. FLEX is slated to release quarterly numbers on May 1.
The Zacks Consensus Estimate for FLEX’s to-be-reported quarter’s earnings and revenues is pegged at 55 cents per share and $6.1 billion, respectively. Shares of FLEX have gained 87.5% in the past year.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.