CDW earnings: what to look for from CDW

What happened

CDW, an IT solutions provider, reports results Wednesday before market open. Last quarter it beat revenue expectations with revenues of $6.57 billion, up 10% year on year, and beat earnings per share estimates. This quarter analysts expect revenue to grow 7.7% year on year.

Confirmed

Global impact / market context

CDW has missed Wall Street revenue estimates many times over the past two years, so the 7.7% growth target is a test. Since CDW earns money by reselling IT products and services, slower revenue growth would mean less profit per sale and weaker cash available to run the business.

Analyst inference

Peers TD SYNNEX and Connection have already reported strong revenue growth, beating estimates by 13.5% and 13%. A strong peer result does not guarantee CDW will match it, so CDW's own revenue figure and outlook remain the key comparison for investors.

Analyst inference

What to watch

1. CDW reports results Wednesday before market open. Watch whether revenue reaches the 7.7% year-on-year growth analysts expect, after last quarter's 10% growth delivered revenues of $6.57 billion and beat estimates. Confirmed
2. Watch whether CDW management tells investors what revenue and profit it expects next quarter, and whether that guidance falls short of or clears the estimates analysts have reconfirmed over the last 30 days. Proposed
3. Watch the share price reaction, given TD SYNNEX fell 8.6% and Connection fell 1% despite beating revenue estimates. A similar pattern would show investors care about future outlook for IT spending. Analyst inference

Evidence

• stockstory.org