CDW Set to Report Q2 Earnings: Here's What You Should Know
CDW Corporation CDW is slated to report second-quarter 2022 results on Aug 3.
The Zacks Consensus Estimate for revenues is pegged at $6.16 billion, suggesting growth of 19.6% from the year-ago quarter’s reported figure. The consensus mark for earnings is pegged at $2.4 per share, indicating an increase of 18.8% from $2.02 recorded in the year-ago quarter.
CDW’s earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, the average surprise being 9.1%.
CDW Corporation Price and EPS Surprise
CDW Corporation price-eps-surprise | CDW Corporation Quote
Factors to Note
The ongoing demand for CDW's hardware and software products, as well as integrated IT solutions, including mobility, security, data center optimization, virtualization and cloud computing, is likely to have helped the company's second-quarter performance. The expanded product portfolio and the global presence of the corporation bode well.
The IT solutions are expected to gain traction as more people are shifting to remote jobs or a hybrid work environment. Thus, the to-be-reported quarter's performance is expected to have been aided by increased investments in infrastructure and digitization.
CDW's approach of encouraging organic growth and pursuing buyouts is likely to have raised the company's profile. Buyouts like Amplified IT and Focal Point Data Risk have helped to improve its educational and security capabilities, respectively.
In April 2022, CDW expanded its partnership with Google Cloud to allow customers to easily adopt AI-powered Contact Center-as-a-Service capabilities. Through this expanded partnership, CDW and Google Cloud customers will be able to redefine the possibilities of AI-powered capabilities, thereby elevating the customer experience and improving customer loyalty.
However, global macroeconomic weakness, the pandemic-induced global supply-chain troubles and component shortages are anticipated to have dented the to-be-reported quarter’s performance. Increasing expenses and material costs due to rising inflation are likely to have acted as headwinds.
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.
CDW has an Earnings ESP of +1.11% 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 some other stocks you may consider, as our proven model shows that these too have the right mix of elements to beat estimates this time around.
Suncor Energy SU has an Earnings ESP of +11.91% and currently sports a Zacks Rank #1. SU is slated to release quarterly numbers on Aug 4. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for SU’s to-be-reported quarter’s earnings and revenues is pegged at $1.74 per share and $9.9 billion, respectively. SU surpassed earnings estimates in two of the preceding four quarters, delivering an average surprise of 3.6%. Shares of SU have gained 76.3% in the past year.
Lumen Technologies, Inc. LUMN has an Earnings ESP of +0.58% and currently flaunts a Zacks Rank #1. LUMN is slated to release quarterly numbers on Aug 3.
The Zacks Consensus Estimate for LUMN’s to-be-reported quarter’s earnings and revenues is pegged at 46 cents per share and $4.6 billion, respectively. LUMN surpassed earnings estimates in three of the preceding four quarters, delivering an average surprise of 17.6%. Shares of LUMN have lost 13.2% in the past year.
Albemarle ALB has an Earnings ESP of +8.38% and currently carries a Zacks Rank #2. ALB is slated to release quarterly numbers on Aug 3.
The Zacks Consensus Estimate for ALB’s to-be-reported quarter’s earnings and revenues is pegged at $3.03 per share and $1.31 billion, respectively. ALB surpassed earnings estimates in all of the preceding four quarters, delivering an average surprise of 22.5%. Shares of ALB have gained 18.1% in the past year.
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