IT solutions provider CDW (NASDAQGS:CDW) will be reporting results this Tuesday before market hours. Here’s what to expect.
CDW beat analysts’ revenue expectations by 7.8% last quarter, reporting revenues of $5.98 billion, up 10.2% year on year. It was a very strong quarter for the company, with a solid beat of analysts’ revenue estimates and a beat of analysts’ EPS estimates.
Is CDW a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, analysts are expecting CDW’s revenue to grow 4.2% year on year to $5.75 billion, a reversal from the 2% decrease it recorded in the same quarter last year. Adjusted earnings are expected to come in at $2.62 per share.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. 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 Q3 results, giving us a hint as to what we can expect. TD SYNNEX delivered year-on-year revenue growth of 6.6%, beating analysts’ expectations by 3.5%, and Avnet reported revenues up 5.3%, topping estimates by 3%. TD SYNNEX traded up 9.5% following the results while Avnet was down 4.6%.
Read our full analysis of TD SYNNEX’s results here and Avnet’s results here.
Debates around the economy’s health and the impact of potential tariffs and corporate tax cuts have caused much uncertainty in 2025. 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 2.9% on average over the last month. CDW is up 1.9% during the same time and is heading into earnings with an average analyst price target of $203.40 (compared to the current share price of $160.35).
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