Zacks Research Has Negative Outlook for CDW FY2024 Earnings

CDW Co. (NASDAQ:CDW) – Investment analysts at Zacks Research cut their FY2024 earnings estimates for CDW in a research report issued on Wednesday, November 20th. Zacks Research analyst R. Department now expects that the information technology services provider will earn $9.03 per share 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.

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

CDW Stock Down 2.0 %

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

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

Institutional Trading of CDW

A number of hedge funds and other institutional investors have recently modified their holdings of CDW. RDA Financial Network grew its stake in CDW by 3.0% during the second quarter. RDA Financial Network now owns 1,587 shares of the information technology services provider’s stock valued at $355,000 after acquiring an additional 46 shares in the last quarter. PDS Planning Inc grew its stake in CDW by 4.3% during the third quarter. PDS Planning Inc now owns 1,186 shares of the information technology services provider’s stock valued at $268,000 after acquiring an additional 49 shares in the last quarter. Oregon Public Employees Retirement Fund grew its stake in shares of CDW by 0.5% in the 2nd quarter. Oregon Public Employees Retirement Fund now owns 11,541 shares of the information technology services provider’s stock worth $2,583,000 after buying an additional 54 shares in the last quarter. Profund Advisors LLC grew its stake in shares of CDW by 0.5% in the 2nd quarter. Profund Advisors LLC now owns 12,469 shares of the information technology services provider’s stock worth $2,791,000 after buying an additional 58 shares in the last quarter. Finally, OneAscent Wealth Management LLC grew its stake in shares of CDW by 2.5% in the 3rd quarter. OneAscent Wealth Management LLC now owns 2,387 shares of the information technology services provider’s stock worth $540,000 after buying an additional 58 shares in the last quarter. 93.15% of the stock is owned by hedge funds and other institutional investors.

CDW Increases Dividend

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

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.