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Vernon Hills, Illinois-based CDW Corporation (CDW) provides information technology (IT) solutions in the U.S., U.K., and Canada. With a market cap of $30.9 billion, CDW operates through Corporate, Small Business, and Public segments. It is expected to announce its Q2 earnings before the market opens on Wednesday, Jul. 31.
Ahead of the event, analysts expect CDW to report a profit of $2.40 per share, down 1.2% from $2.43 per share reported in the year-ago quarter. The company has surpassed Wall Street’s EPS estimates in three of the past four quarters while missing on one other occasion. Its EPS for the last reported quarter declined by 5% to $1.89 and missed the consensus estimates by 7.4%.
Looking ahead to fiscal 2024, analysts expect CDW to report an EPS of $9.67, up 1.4% from $9.54 in fiscal 2023. In fiscal 2025, its EPS is expected to grow 9.1% year over year to $10.55.
CDW stock is up 1.2% on a YTD basis, substantially underperforming the S&P 500 Index’s ($SPX) 16.5% gains and the S&P 500 Technology Sector SPDR’s (XLK) 17% returns over the same time frame.
Macroeconomic uncertainties have impacted its customers’ willingness and ability to spend on information technology, which has pressured the stock’s momentum this year.
CDW stock fell 11.3% on May 1 following the release of its Q1 results. The company reported a 4.5% drop in revenues and a 6.1% drop in net income compared to the year-ago quarter. The company also reported a fall in revenue from all three segments. However, CDW has consistently paid dividends over the past years and repurchased 200,000 shares worth $52 million in the previous quarter, demonstrating its commitment to shareholders.
The consensus opinion on CDW stock is moderately bullish, with a “Moderate Buy” rating overall. Out of the 11 analysts covering the stock, seven recommend a “Strong Buy,” one suggests a “Moderate Buy,” and three advise a “Hold” rating.
The average target price for CDW stock is $250.10, indicating a potential upside of 8.7% from the current price levels.
On the date of publication, Kritika Sarmah did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
