CDW Gears Up to Report Q3 Earnings: What's in the Offing?
CDW Corporation CDW is slated to report third-quarter 2023 results on Nov 1.
The Zacks Consensus Estimate for revenues is pegged at $5.82 billion, suggesting a decline of 6.3% from the year-ago quarter’s reported figure. The consensus estimate for earnings is pegged at $2.59 per share, indicating a decrease of 0.4% from the year-ago quarter’s reported figure.
CDW’s earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, the average surprise being 3.9%.
CDW Corporation Price and EPS Surprise
CDW Corporation price-eps-surprise | CDW Corporation Quote
Factors to Note
CDW’s third-quarter performance is expected to have benefited from solid momentum across NetComm, storage, software, and security. Our estimate for NetComm products is pegged at $828.2 million, showing a year-over-year rise of 14.9%.
The ongoing demand for CDW's hardware and software products, as well as integrated IT solutions, is likely to have acted as a tailwind. Our estimate for software products is pegged at $915.4 million, indicating a year-over-year decline of 0.6%.
The government business segment is likely to have benefited from increased expenditure by the federal government on complex services that enable hybrid infrastructure and cloud opportunities. The company’s widespread footprint, which includes its presence in the United States, U.K. and Canada, is likely to have acted as a tailwind.
However, the company’s performance is likely to have been affected due to rising economic uncertainty, which has led to weakening IT spending coupled with elongated sales cycles and smaller deal sizes. Hardware, software and services businesses might be significantly impacted due to the deferral of major hardware projects.
What Our Model Says
Our proven model predicts an earnings beat for CDW this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. This is exactly the case here, as elaborated below.
CDW has an Earnings ESP of +0.17% and a Zacks Rank #3. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Other Stocks With Favorable Combination
Here are a few stocks that you may want to consider, as our model shows that these have the right combination of elements to post an earnings beat this quarter.
Itron ITRI has an Earnings ESP of +23.18% and currently flaunts a Zacks Rank of 1. ITRI is set to announce quarterly figures on Nov 2. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for ITRI’s to-be-reported quarter’s earnings and revenues is pegged at 51 cents per share and $540.8 million, respectively. Shares of ITRI have gained 17% in the past year.
Cummins CMI will release third-quarter 2023 results on Nov 2. The company has an Earnings ESP of +1.05% and a Zacks Rank #3.
The Zacks Consensus Estimate for Cummin’s to-be-reported quarter’s earnings and revenues is pegged at $4.63 per share and $8.14 billion, respectively. Shares of CMI have gained 1% in the past year.
GoDaddy Inc GDDY has an Earnings ESP of +8.11% and currently sports a Zacks Rank #1. GDDY is scheduled to report quarterly earnings on Nov 2.
The Zacks Consensus Estimate for GDDY’s to-be-reported quarter’s earnings and revenues is pegged at 71 cents per share and $1.06 billion, respectively. Shares of GDDY have plunged 10.9% in the past year.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Itron, Inc. (ITRI) : Free Stock Analysis Report
Cummins Inc. (CMI) : Free Stock Analysis Report
CDW Corporation (CDW) : Free Stock Analysis Report
GoDaddy Inc. (GDDY) : Free Stock Analysis Report
