Zacks Research Has Pessimistic Outlook of CDW Q2 Earnings

CDW Co. (NASDAQ:CDW - Free Report) - Investment analysts at Zacks Research cut their Q2 2025 EPS estimates for CDW in a report issued on Wednesday, February 26th. Zacks Research analyst R. Department now forecasts that the information technology services provider will post earnings per share of $2.43 for the quarter, down from their prior estimate of $2.53. The consensus estimate for CDW's current full-year earnings is $9.41 per share.

CDW (NASDAQ:CDW - Get Free Report) last issued its quarterly earnings data on Wednesday, February 5th. The information technology services provider reported $2.40 earnings per share (EPS) for the quarter, beating the consensus estimate of $2.33 by $0.07. CDW had a return on equity of 55.42% and a net margin of 5.13%.

Several other brokerages have also recently issued reports on CDW. Morgan Stanley increased their price objective on CDW from $193.00 to $201.00 and gave the company an "equal weight" rating in a research note on Thursday, February 6th. UBS Group reduced their target price on CDW from $233.00 to $220.00 and set a "buy" rating for the company in a report on Tuesday, January 7th. Barclays upped their target price on shares of CDW from $201.00 to $223.00 and gave the company an "equal weight" rating in a report on Thursday, February 6th. Finally, Redburn Atlantic initiated coverage on shares of CDW in a research note on Friday, November 15th. They issued a "buy" rating and a $230.00 price objective on the stock. Four research analysts have rated the stock with a hold rating and five have assigned a buy rating to the stock. According to MarketBeat, the company has an average rating of "Moderate Buy" and an average price target of $242.67.

Remove Ads

CDW Trading Down 0.5 %

Shares of CDW stock traded down $0.82 during mid-day trading on Monday, hitting $166.44. The stock had a trading volume of 783,202 shares, compared to its average volume of 1,348,151. The firm has a 50-day moving average of $186.37 and a two-hundred day moving average of $197.71. The company has a quick ratio of 1.24, a current ratio of 1.35 and a debt-to-equity ratio of 2.38. The firm has a market cap of $22.05 billion, a P/E ratio of 20.89, a price-to-earnings-growth ratio of 3.21 and a beta of 1.01. CDW has a 12-month low of $164.98 and a 12-month high of $263.37.

CDW announced that its board has authorized a stock repurchase plan on Wednesday, February 5th that allows the company to repurchase $750.00 million in outstanding shares. This repurchase authorization allows the information technology services provider to purchase up to 2.7% of its shares through open market purchases. Shares repurchase plans are typically a sign that the company's leadership believes its stock is undervalued.

CDW Announces Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Tuesday, March 11th. Stockholders of record on Tuesday, February 25th will be paid a $0.625 dividend. The ex-dividend date of this dividend is Tuesday, February 25th. This represents a $2.50 dividend on an annualized basis and a dividend yield of 1.50%. CDW's payout ratio is presently 31.37%.

Institutional Trading of CDW

Several hedge funds and other institutional investors have recently bought and sold shares of CDW. Private Advisor Group LLC raised its stake in shares of CDW by 10.7% in the third quarter. Private Advisor Group LLC now owns 3,708 shares of the information technology services provider's stock worth $839,000 after acquiring an additional 359 shares during the last quarter. Wealth Enhancement Advisory Services LLC boosted its position in CDW by 7.3% during the third quarter. Wealth Enhancement Advisory Services LLC now owns 6,667 shares of the information technology services provider's stock valued at $1,509,000 after purchasing an additional 451 shares during the last quarter. Princeton Global Asset Management LLC grew its position in shares of CDW by 2.9% in the 3rd quarter. Princeton Global Asset Management LLC now owns 13,245 shares of the information technology services provider's stock valued at $2,997,000 after acquiring an additional 379 shares during the period. Van ECK Associates Corp raised its holdings in CDW by 11.0% in the 3rd quarter. Van ECK Associates Corp now owns 24,619 shares of the information technology services provider's stock valued at $5,358,000 after acquiring an additional 2,441 shares during the period. Finally, Intact Investment Management Inc. acquired a new stake in CDW in the 3rd quarter worth about $543,000. 93.15% of the stock is currently owned by institutional investors and hedge funds.

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.