Exploring CDW's Earnings Expectations

CDW CDW will release its quarterly earnings report on Wednesday, 2024-10-30. Here's a brief overview for investors ahead of the announcement.

Analysts anticipate CDW to report an earnings per share (EPS) of $2.86.

The announcement from CDW is eagerly anticipated, with investors seeking news of surpassing estimates and favorable guidance for the next quarter.

It's worth noting for new investors that guidance can be a key determinant of stock price movements.

Earnings Track Record

In the previous earnings release, the company missed EPS by $0.03, leading to a 2.07% drop in the share price the following trading session.

Here's a look at CDW's past performance and the resulting price change:

Performance of CDW Shares

Shares of CDW were trading at $218.5 as of October 28. Over the last 52-week period, shares are up 10.5%. Given that these returns are generally positive, long-term shareholders should be satisfied going into this earnings release.

Analyst Observations about CDW

For investors, grasping market sentiments and expectations in the industry is vital. This analysis explores the latest insights regarding CDW.

The consensus rating for CDW is Neutral, derived from 3 analyst ratings. An average one-year price target of $236.33 implies a potential 8.16% upside.

Comparing Ratings Among Industry Peers

In this analysis, we delve into the analyst ratings and average 1-year price targets of TD Synnex, Arrow Electronics and Insight Enterprises, three key industry players, offering insights into their relative performance expectations and market positioning.

• The prevailing sentiment among analysts is an Outperform trajectory for TD Synnex, with an average 1-year price target of $139.6, implying a potential 36.11% downside.
• Analysts currently favor an Neutral trajectory for Arrow Electronics, with an average 1-year price target of $130.33, suggesting a potential 40.35% downside.
• Analysts currently favor an Outperform trajectory for Insight Enterprises, with an average 1-year price target of $225.0, suggesting a potential 2.97% upside.

Peers Comparative Analysis Summary

The peer analysis summary offers a detailed examination of key metrics for TD Synnex, Arrow Electronics and Insight Enterprises, providing valuable insights into their respective standings within the industry and their market positions and comparative performance.

Key Takeaway:

CDW ranks at the top for Revenue Growth among its peers. It is in the middle for Gross Profit. CDW is at the top for Return on Equity.

About CDW

CDW Corp is a multi-brand provider of information technology ("IT") solutions to small, medium, and large business, government, education, and healthcare customers in the United States, the United Kingdom, and Canada. The company's broad array of offerings ranges from discrete hardware and software products to integrated IT solutions and services that include on-premise and cloud capabilities across hybrid infrastructure, digital experience, and security. The company has three operating segments namely, Corporate, Small Business, and Public. The Corporate segment generates the majority of its revenue and primarily serves US private sector business customers with more than 250 employees.

A Deep Dive into CDW's Financials

Market Capitalization Analysis: Above industry benchmarks, the company's market capitalization emphasizes a noteworthy size, indicative of a strong market presence.

Revenue Growth: CDW's revenue growth over a period of 3 months has faced challenges. As of 30 June, 2024, the company experienced a revenue decline of approximately -3.6%. This indicates a decrease in the company's top-line earnings. When compared to others in the Information Technology sector, the company excelled with a growth rate higher than the average among peers.

Net Margin: CDW's net margin excels beyond industry benchmarks, reaching 5.18%. This signifies efficient cost management and strong financial health.

Return on Equity (ROE): CDW's financial strength is reflected in its exceptional ROE, which exceeds industry averages. With a remarkable ROE of 13.03%, the company showcases efficient use of equity capital and strong financial health.

Return on Assets (ROA): CDW's ROA surpasses industry standards, highlighting the company's exceptional financial performance. With an impressive 2.1% ROA, the company effectively utilizes its assets for optimal returns.

Debt Management: With a high debt-to-equity ratio of 2.66, CDW faces challenges in effectively managing its debt levels, indicating potential financial strain.

To track all earnings releases for CDW visit their earnings calendar on our site.

This article was generated by Benzinga's automated content engine and reviewed by an editor.