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CDW Corporation (CDW) to Post Q2 Earnings: What's in Store?

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CDW Corporation CDW is set to report second-quarter 2021 results on Aug 4.

The Zacks Consensus Estimate for revenues is pegged at $4.95 billion, suggesting growth of 13.3% from the prior-year quarter. The consensus mark for earnings stands at $1.79 per share, suggesting year-over-year growth of 14.7%.

CDW’s earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, the average surprise being 17.4%.

CDW Corporation Price and EPS Surprise

CDW Corporation Price and EPS Surprise
CDW Corporation Price and EPS Surprise

CDW Corporation price-eps-surprise | CDW Corporation Quote

Factors to Note

CDW’s to-be-reported quarter’s performance is likely to have benefited from the typical peak season of education, which traditionally has been the number one factor driving revenues in the second quarter.

Accelerated investment in digital transformation is anticipated to have aided CDW’s second-quarter performance. The company’s enriched product portfolio along with global presence makes itself a trusted customer as well as vendors’ choice.

Robust PC shipments during the second quarter might have acted as a major tailwind. Per Gartner’s latest report, worldwide combined PC/ Chromebook shipments grew 10% year-over-year in the last quarter.

The company anticipates growth of 11% to 11.5% in non-GAAP constant currency earnings-per-share for 2021. For the second quarter, the company expects non-GAAP earnings per share to grow in line with full-year non-GAAP earnings-per-share growth.

CDW’s strategy of supporting organic growth, alongside buyouts, is likely to have boosted its profile significantly. The firm’s buyouts of Aptris and Scalar Decisions have been instrumental in enhancing its capabilities to solve customers’ business problems.

It acquired two small ServiceNow solution platforms during the fourth quarter of 2020. The integration of these solutions into its portfolio is expected to have driven demand for the firm’s products.

However, ongoing supply constraints are likely to have weighed on its overall quarterly performance.

What Our Model Unveils

Our proven model does not conclusively 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.

Although CDW currently carries a Zacks Rank of 2, it has an Earnings ESP of -0.60%.

Stocks With Favorable Combination

Here are some companies you may want to consider as our model shows that these have the right combination of elements to post an earnings beat:

Avnet, Inc. AVT has a Zacks Rank #1 and an Earnings ESP of +9.82%. You can see the complete list of today’s Zacks #1 Rank stocks here.

Opendoor Technologies Inc. OPEN has a Zacks Rank #2 and an Earnings ESP of +2.86%.

Riot Blockchain, Inc. RIOT has a Zacks Rank #3 and an Earnings ESP of +120%.


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