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CDW Corporation (CDW), headquartered in Vernon Hills, Illinois, provides information technology (IT) solutions in the United States, the United Kingdom, and Canada. Valued at a market cap of $24.4 billion, it operates through Corporate, Small Business, and Public segments. The company is expected to announce its Q4 earnings before the market opens on Wednesday, Oct. 30.
Ahead of the event, analysts expect CDW to report a profit of $2.22 per share, down 11.9% from $2.52 per share reported in the year-ago quarter. The company has missed Wall Street's bottom-line estimates in three of the last four quarters while beating on two other occasions.
For fiscal 2024, analysts expect CDW to report an adjusted EPS of $8.99, down 5.8% from $9.54 in fiscal 2023. However, in fiscal 2025, its EPS is expected to rebound, rising 4.8% year-over-year to $9.42.
Over the past year, CDW shares have fallen 17.4%, substantially underperforming the S&P 500 Index’s ($SPX) 22% gains and the Technology Select Sector SPDR Fund’s (XLK) 18.2% returns during the same time frame.
CDW has lagged behind the broader market over the past year due to weaker-than-expected performance in the U.S. IT market, with flat growth and reduced demand from enterprise clients. Declines in operating income and net income, coupled with macroeconomic uncertainties and tighter IT budgets, have also weighed on investor sentiment.
On Oct. 30, CDW shares dropped 11.3% after the company announced its third-quarter results. It reported an adjusted EPS of $2.63 and revenue of $5.5 billion, missing Wall Street expectations.
The consensus opinion on CDW stock is moderately bullish, with an overall “Moderate Buy” rating. Out of the 12 analysts covering the stock, six recommend “Strong Buy,” one advises “Moderate Buy,” and five suggest “Hold” rating.
The mean price target of $222.18 represents a potential upside of 22.8% from current price levels.
