CDW Corporation CDW is set to report second-quarter 2017 results on Aug 3. Last quarter, the company posted in-line earnings. Let us see how things are shaping up for this announcement.
Factors at Play
CDW specializes in offering information technology products and services to business, government, education and healthcare customers, primarily in the U.S. and Canada.
Growth in customer channels and consistent strategic achievements are a couple of positive factors that are likely to drive its performance in the to-be-reported quarter. Additionally, CDW’s robust product portfolio and product refreshes are positives.
The company’s exposure in the high-end corporate desktop and digital education implementation space is encouraging. Moreover, its focus on small & medium businesses and customer additions help in expanding market share.
However, a highly-leveraged balance sheet, competition from Insight Enterprises Inc. NSIT and PC Connection, Inc., and pricing pressure remain headwinds.
CDW Corporation Price and EPS Surprise
Earnings Whispers
Our proven model does not conclusively show that CDW will beat on earnings this quarter. This is because a stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) for this to happen. That is not the case here as you will see below.
Zacks ESP: Earnings ESP for CDW is -4.08%. This is because the Most Accurate estimate of 94 cents is lower than the Zacks Consensus Estimate of 98 cents. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: CDW carries a Zacks Rank #5 (Strong Sell). Note that, we caution against stocks with a Zacks Rank #4 or 5 (Sell rated) going into the earnings announcement, especially when the company is seeing negative estimate revisions.
Stocks to Consider
Here are some other companies you may consider as our proven model shows these have the right combination of elements to post an earnings beat this quarter:
CA Inc. CA, carries a Zacks Rank #3 and has an Earnings ESP of +4.00%.
Symantec Corporation SYMC, with an Earnings ESP of +16.67%, carries a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.
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