IT solutions provider CDW (NASDAQGS:CDW) will be reporting results this Wednesday morning. Here’s what you need to know.
CDW beat analysts’ revenue expectations by 5.3% last quarter, reporting revenues of $5.20 billion, up 6.7% year on year. It was an exceptional quarter for the company, with an impressive beat of analysts’ EPS estimates.
Is CDW a buy or sell going into earnings? Read our full analysis here, it’s free.
This quarter, analysts are expecting CDW’s revenue to grow 2.3% year on year to $5.55 billion, a reversal from the 3.6% decrease it recorded in the same quarter last year. Adjusted earnings are expected to come in at $2.49 per share.
Heading into earnings, analysts covering the company have grown increasingly bullish with revenue estimates seeing 3 upward revisions over the last 30 days (we track 8 analysts). CDW has missed Wall Street’s revenue estimates five times over the last two years.
Looking at CDW’s peers in the it distribution & solutions segment, some have already reported their Q2 results, giving us a hint as to what we can expect. TD SYNNEX delivered year-on-year revenue growth of 7.2%, beating analysts’ expectations by 4.4%, and Connection reported revenues up 3.2%, falling short of estimates by 0.6%. TD SYNNEX traded up 7.9% following the results while Connection was down 4%.
Read our full analysis of TD SYNNEX’s results here and Connection’s results here.
The outlook for 2025 remains clouded by potential trade policy changes and corporate tax discussions, which could impact business confidence and growth. While some of the it distribution & solutions stocks have shown solid performance in this choppy environment, the group has generally underperformed, with share prices down 2.1% on average over the last month. CDW is down 2.9% during the same time and is heading into earnings with an average analyst price target of $213 (compared to the current share price of $172.15).
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