What’s in the CDW Corporation (CDW) Third Quarter Earnings Cards? – November 1, 2021
CDW Company (CDW – Free Report) is expected to release its third quarter 2021 results on November 3.
Zacks’ consensus estimate for revenue is set at $ 5.34 billion, which suggests growth of 12.3% from the figure released a year ago. The consensus earnings mark is set at $ 2.05 per share, indicating a 12% increase from $ 1.83 the year before.
CDW’s earnings have beaten Zacks’ consensus estimate in each of the past four quarters, with an average surprise of 16.7%.
Factors to note
CDW’s third quarter performance likely benefited from continued demand for its hardware and software products, and integrated IT solutions such as mobility, security, data center optimization, virtualization and cloud computing. The company’s enhanced product portfolio and global presence make it a trusted choice among customers as well as suppliers.
With the economy having rebounded to pre-pandemic levels, several changes such as the mass deployment of vaccines, tracking of COVID variants, return-to-power policy and infrastructure changes are occurring. Thus, the acceleration of investments in digitization may have contributed to the performance of the quarter to be published.
The company forecasts a 16% to 16.5% growth in non-GAAP constant currency earnings per share for 2021. For the third quarter, CDW expects non-GAAP earnings per share to increase in line with normal seasonality of 4% on average. daily sales basis.
CDW’s strategy of supporting organic growth alongside buybacks is likely to have significantly strengthened its profile. The company’s buyouts, such as Amplified IT and Focal Point Data Risk, were instrumental in improving its education and security capabilities, respectively.
However, persistent supply chain constraints for transactional and infrastructure products may have weighed on performance in the reporting quarter.
What our model says
Our proven model does not conclusively predict an increase in profits for CDW this season. The combination of a positive earnings ESP and a Zacks # 1 (strong buy), 2 (buy) or 3 (hold) ranking increases the odds of beating the winnings. But it is not the case here. You can discover the best stocks to buy or sell, before they are flagged, with our ESP Earnings Filter.
CDW currently has a rank 3 of Zacks and an ESP on earnings of 0.00%.
Actions with favorable combinations
Here are a few companies that according to our model have the right combination of elements to show a profit pace in their next release:
HP (HPQ – Free Report) currently has a +1.89% Earnings ESP and a Zacks # 1 ranking. You can see The full list of today’s Zacks # 1 Rank stocks here.
Gold Entertainment, Inc. (GDEN – Free Report) has + 37.45% Revenue ESP and Zacks # 1 rank currently.
Uber Technologies (UBER – Free Report) has an ESP of + 15.45% earnings and a Zacks # 3 rank currently.