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CDW Corp (CDW) to Report Q1 Earnings: What's in Store?

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CDW Corporation (CDW - Free Report) is slated to release first-quarter 2020 results on May 6.

In its recently-released preliminary results, the company projected revenues of $4.39 billion for the first quarter, which suggests year-over-year growth of 10.9%. The Zacks Consensus Estimate is also currently pegged at $4.39 billion.

Further, the company anticipates non-GAAP earnings per share to jump 11.3% year over year to $1.38. The Zacks Consensus Estimate for earnings is pegged at $1.36 per share.

Notably, CDW has surpassed estimates in all of the trailing four quarters, the average positive surprise being 8.3%.

Let’s see how things have shaped up for the upcoming announcement.

Factors at Play

In its prelim results, CDW stated that it witnessed robust demand during the first quarter as the coronavirus-led global lockdown sparked urgent need for greater technology capabilities in corporate offices as well as households.

Furthermore, CDW is likely to have benefited from growth across all U.S. channels and international operations in the first quarter. Notably, its customer end markets as well as an expanding product and technology portfolio are key drivers.

Increasing demand for the company’s solid product and services portfolio addressing customer requirements across the IT landscape is likely to have been a constant tailwind. The firm has been gaining traction from its extending partner ecosystem, which comprises players Apple, Adobe, Google, HP, IBM and Microsoft, et al.

CDW’s strategy to supplement organic growth alongside acquisitions is also anticipated to have strengthened the company profile significantly. The company’s latest buyouts of Aptris and Scalar Decisions have been instrumental in enhancing its capabilities to solve customers’ business problems. This makes us optimistic about the upcoming results.

However, adverse foreign-currency fluctuations and macroeconomic turbulence are key concerns this earnings season.

What Our Model Says

Our proven model does not predict an earnings beat for CDW this season. The combination of a positive Earnings ESP, and Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold), increases the chances of an earnings beat. But that’s not the case here. You can uncover the best stocks to buy or sell, before they’re reported, with our Earnings ESP Filter.

CDW currently carries a Zacks Rank of 4 and has an Earnings ESP of +1.84%.

Stocks With Favorable Combinations

Here are some companies, which, per our model, have the right combination of elements to post an earnings beat this quarter:

Shopify Inc. (SHOP - Free Report) has an Earnings ESP of +23.41% and currently carries a Zacks Rank of 2. You can see the complete list of today’s Zacks #1 Rank stocks here.

Inphi Corporation has an Earnings ESP of +20.04% and holds a Zacks Rank of 2 currently.

Take Two Interactive (TTWO - Free Report) has an Earnings ESP of +13.24% and carries a Zacks Rank #2.

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Take-Two Interactive Software, Inc. (TTWO) - free report >>

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