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CDW Corp (CDW) to Report Q4 Earnings: What's in the Cards?

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Zacks Equity Research
·3 min read
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CDW Corporation CDW is set to report fourth-quarter 2020 results on Feb 10.

The Zacks Consensus Estimate for quarterly revenues is pegged at $4.43 billion, indicating a 2.44% decline from the year-ago reported number. The consensus mark for earnings is pegged at $1.53 per share, suggesting a 2.55% decrease.

The company’s earnings surpassed the Zacks Consensus Estimate in three of the trailing four quarters and came in line in the other, the positive surprise being 11.09%, on average.

CDW Corporation Price and Consensus

CDW Corporation Price and Consensus
CDW Corporation Price and Consensus

CDW Corporation price-consensus-chart | CDW Corporation Quote

Factors at Play

CDW’s fourth-quarter performance is likely to have been driven by continued strength in the Public segment. Also, strength in the Government and Education sector is expected to have been a tailwind.

Moreover, CDW’s strategy of supporting organic growth, alongside acquisitions, is likely to have boosted the company’s profile significantly. The firm’s 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.

Nonetheless, Healthcare sector is likely to have remained weak, which might have posed a headwind for the Public segment.

Furthermore, according to the company’s last earnings call, the Corporate segment seems to have had a weak start to the quarter, which might have hurt it.

What Our Model Says

Our proven model predicts 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. That’s just the case here. You can uncover the best stocks to buy or sell, before they’re reported, with our Earnings ESP Filter.

CDW currently has a Zacks Rank of 2 and an Earnings ESP of +6.74%.

Other Stocks With Favorable Combination

Here are some other companies, which, per our model, have the right combination of elements to post an earnings beat in their upcoming releases:

Vishay Intertechnology, Inc. VSH has an Earnings ESP of +4.82% and a Zacks Rank of 2, at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

Qorvo, Inc. QRVO has an Earnings ESP of +1.71% and a Zacks Rank of 2, currently.

Facebook, Inc. FB has an Earnings ESP of +0.49% and currently, a Zacks Rank of 3.

5 Stocks Set to Double

Each was hand-picked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2020. Each comes from a different sector and has unique qualities and catalysts that could fuel exceptional growth.

Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.

Today, See These 5 Potential Home Runs >>


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Facebook, Inc. (FB) : Free Stock Analysis Report

Vishay Intertechnology, Inc. (VSH) : Free Stock Analysis Report

Qorvo, Inc. (QRVO) : Free Stock Analysis Report

CDW Corporation (CDW) : Free Stock Analysis Report

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