CDW To Report Q2 Earnings: What's In Store For The Stock?
Zacks Investment Research | Jul 25, 2019 11:32PM ET
CDW Corporation (NASDAQ:CDW) is slated to release second-quarter 2019 results on Jul 31.
The company’s earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, the average being 8.91%.
In the first quarter, the company’s non-GAAP earnings rose 18.2% year over year to $1.24 and also surpassed the Zacks Consensus Estimate of $1.10.
Additionally, revenues of $3.96 billion marked a year-over-year rise of 9.7% and topped the Zacks Consensus Estimate of $3.77 billion as well. Moreover, the top line was up 12.4% in constant currency (cc).
The Zacks Consensus Estimate for second-quarter revenues is currently pegged at $4.49 billion, indicating 7.24% growth from the year-ago reported figure. Further, the consensus mark for earnings has been stable at $1.51 over the past 60 days.
Factors to Impact Q2 Results
CDW’s second-quarter results are likely to be driven by the company’s balanced portfolio of customer end-markets and the breadth of its product and solutions pipeline.
The company is also expected to benefit from strong growth in the international markets this June quarter.
Moreover, the recent acquisition of Scalar, which performed in line with the company’s expectations in the last reported quarter, is expected to be accretive in the second quarter as well.
However, earlier-than-expected federal deal closings in the March quarter might decelerate revenue growth in the June quarter, which make us apprehensive about the stock’s prospects.
This apart, adverse foreign currency fluctuations and macroeconomic perils persist as a key threat. Also, the highly competitive environment is a major concern this earnings season.
CDW Corporation Price and EPS Surprise
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