Zacks Research Has Negative Outlook for CDW FY2024 Earnings

CDW Co. (NASDAQ:CDW) – Equities researchers at Zacks Research reduced their FY2024 EPS estimates for shares of CDW in a research report issued on Wednesday, November 20th. Zacks Research analyst R. Department now anticipates that the information technology services provider will post earnings per share of $9.03 for the year, down from their prior forecast of $9.42. The consensus estimate for CDW’s current full-year earnings is $8.99 per share. Zacks Research also issued estimates for CDW’s Q4 2024 earnings at $2.26 EPS, Q1 2025 earnings at $1.98 EPS, Q3 2025 earnings at $2.66 EPS, Q4 2025 earnings at $2.21 EPS, FY2025 earnings at $9.38 EPS, Q1 2026 earnings at $2.26 EPS, Q2 2026 earnings at $2.87 EPS, Q3 2026 earnings at $2.96 EPS and FY2026 earnings at $10.51 EPS.

CDW (NASDAQ:CDW) last released its earnings results on Wednesday, October 30th. The information technology services provider reported $2.63 earnings per share (EPS) for the quarter, missing the consensus estimate of $2.68 by ($0.05). The firm had revenue of $5.52 billion during the quarter, compared to the consensus estimate of $5.72 billion. CDW had a return on equity of 58.31% and a net margin of 5.33%. CDW’s revenue was down 2.0% compared to the same quarter last year. During the same quarter last year, the business posted $2.60 EPS.

Other equities research analysts have also issued research reports about the stock. Redburn Atlantic assumed coverage on shares of CDW in a report on Friday, November 15th. They issued a “buy” rating and a $230.00 target price for the company. JPMorgan Chase & Co. lowered shares of CDW from an “overweight” rating to a “neutral” rating and lowered their target price for the stock from $260.00 to $235.00 in a report on Monday, October 28th. Citigroup lowered shares of CDW from a “buy” rating to a “neutral” rating and decreased their price objective for the company from $250.00 to $245.00 in a report on Tuesday, October 1st. Finally, Barclays decreased their price objective on shares of CDW from $229.00 to $201.00 and set an “equal weight” rating for the company in a report on Thursday, October 31st. Four research analysts have rated the stock with a hold rating and four have given a buy rating to the stock. According to data from MarketBeat.com, the company presently has an average rating of “Moderate Buy” and an average target price of $244.63.

CDW Price Performance

CDW stock opened at $177.80 on Monday. The firm has a 50-day moving average price of $208.69 and a 200-day moving average price of $218.12. The firm has a market capitalization of $23.69 billion, a PE ratio of 22.17, a price-to-earnings-growth ratio of 5.03 and a beta of 1.05. The company has a current ratio of 1.40, a quick ratio of 1.28 and a debt-to-equity ratio of 2.39. CDW has a 12-month low of $172.95 and a 12-month high of $263.37.

CDW Increases Dividend

The firm also recently declared a quarterly dividend, which will be paid on Tuesday, December 10th. Stockholders of record on Monday, November 25th will be given a $0.625 dividend. This represents a $2.50 annualized dividend and a dividend yield of 1.41%. The ex-dividend date of this dividend is Monday, November 25th. This is a boost from CDW’s previous quarterly dividend of $0.62. CDW’s dividend payout ratio is presently 30.56%.

Institutional Investors Weigh In On CDW

Several hedge funds have recently modified their holdings of CDW. ORG Partners LLC bought a new position in shares of CDW during the 2nd quarter worth approximately $34,000. Quest Partners LLC bought a new position in shares of CDW during the 2nd quarter worth approximately $35,000. Canoe Financial LP bought a new position in shares of CDW during the 3rd quarter worth approximately $37,000. Fortitude Family Office LLC raised its stake in shares of CDW by 350.0% during the 3rd quarter. Fortitude Family Office LLC now owns 171 shares of the information technology services provider’s stock worth $39,000 after acquiring an additional 133 shares in the last quarter. Finally, Summit Securities Group LLC bought a new position in shares of CDW during the 2nd quarter worth approximately $40,000. Hedge funds and other institutional investors own 93.15% of the company’s stock.

About CDW

CDW Corporation provides information technology (IT) solutions in the United States, the United Kingdom, and Canada. It operates through three segments: Corporate, Small Business, and Public. The company offers discrete hardware and software products and services, as well as integrated IT solutions, including on-premise and cloud capabilities across hybrid infrastructure, digital experience, and security.