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CDW Corp. (CDW) Q4 Earnings: What's in the Cards this Time?
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CDW Corp. (CDW - Free Report) is set to report fourth-quarter 2016 results on Feb 7. Last quarter, the company posted a positive earnings surprise of 9.41%. Let us see how things are shaping up for this announcement.
Factors at Play
CDW specializes in offering information technology products and services to business, government, education and healthcare customers, primarily in the U.S. and Canada.
The company reported mixed third-quarter 2016 results wherein the top line missed the Zacks Consensus Estimate but the bottom line surpassed the same.
Growth in customer channels and consistent strategic achievements are a couple of positive factors that should drive the company’s performance in the soon-to-be reported quarter. Additionally, CDW’s robust product portfolio and product refreshes are positives.
The company’s exposure in the high-end corporate desktop and digital education implementation space is encouraging. Moreover, its focus on small & medium businesses and customer additions help in expanding its market share.
However, a highly-leveraged balance sheet, competition from Insight Enterprises Inc. (NSIT - Free Report) and PC Connection, Inc., and pricing pressure remain headwinds.
Earnings Whispers
Our proven model does not conclusively show that CDWwill beat on earnings this quarter. This is because a stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) for this to happen. That is not the case here as you will see below.
Zacks ESP: Earnings ESP for CDWis 0.00%. This is because both the Most Accurate estimate and the Zacks Consensus Estimate stand at 76 cents per share. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: CDWhas a Zacks Rank #3, which when combined with an ESP of 0.00%, makes surprise prediction difficult.
We caution against stocks with a Zacks Rank #4 or 5 (Sell-rated) going into the earnings announcement, especially when the company is seeing negative estimate revisions.
Stocks to Consider
Here are a couple of companies which you may consider, as our model shows that they have the right combination of elements to post an earnings beat this quarter:
Moody's Corporation (MCO - Free Report) , with an Earnings ESP of +0.89% and a Zacks Rank #3
The Best Place to Start Your Stock Search
Today, you are invited to download the full list of 220 Zacks Rank #1 ""Strong Buy"" stocks – absolutely free of charge. Since 1988, Zacks Rank #1 stocks have nearly tripled the market, with average gains of +26% per year. Plus, you can access the list of portfolio-killing Zacks Rank #5 ""Strong Sells"" and other private research. See these stocks free >>
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CDW Corp. (CDW) Q4 Earnings: What's in the Cards this Time?
CDW Corp. (CDW - Free Report) is set to report fourth-quarter 2016 results on Feb 7. Last quarter, the company posted a positive earnings surprise of 9.41%. Let us see how things are shaping up for this announcement.
Factors at Play
CDW specializes in offering information technology products and services to business, government, education and healthcare customers, primarily in the U.S. and Canada.
The company reported mixed third-quarter 2016 results wherein the top line missed the Zacks Consensus Estimate but the bottom line surpassed the same.
Growth in customer channels and consistent strategic achievements are a couple of positive factors that should drive the company’s performance in the soon-to-be reported quarter. Additionally, CDW’s robust product portfolio and product refreshes are positives.
The company’s exposure in the high-end corporate desktop and digital education implementation space is encouraging. Moreover, its focus on small & medium businesses and customer additions help in expanding its market share.
However, a highly-leveraged balance sheet, competition from Insight Enterprises Inc. (NSIT - Free Report) and PC Connection, Inc., and pricing pressure remain headwinds.
Earnings Whispers
Our proven model does not conclusively show that CDWwill beat on earnings this quarter. This is because a stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) for this to happen. That is not the case here as you will see below.
Zacks ESP: Earnings ESP for CDWis 0.00%. This is because both the Most Accurate estimate and the Zacks Consensus Estimate stand at 76 cents per share. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: CDWhas a Zacks Rank #3, which when combined with an ESP of 0.00%, makes surprise prediction difficult.
We caution against stocks with a Zacks Rank #4 or 5 (Sell-rated) going into the earnings announcement, especially when the company is seeing negative estimate revisions.
Stocks to Consider
Here are a couple of companies which you may consider, as our model shows that they have the right combination of elements to post an earnings beat this quarter:
CVS Health Corporation (CVS - Free Report) , with an Earnings ESP of +0.60% and a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.
Moody's Corporation (MCO - Free Report) , with an Earnings ESP of +0.89% and a Zacks Rank #3
The Best Place to Start Your Stock Search
Today, you are invited to download the full list of 220 Zacks Rank #1 ""Strong Buy"" stocks – absolutely free of charge. Since 1988, Zacks Rank #1 stocks have nearly tripled the market, with average gains of +26% per year. Plus, you can access the list of portfolio-killing Zacks Rank #5 ""Strong Sells"" and other private research. See these stocks free >>