Regardless of being a frontrunner in built-in data know-how (IT) options, CDW Company CDW reported subpar Q3 outcomes on the finish of October, resulting in a drop in earnings estimate revisions.
Down almost -20% 12 months up to now, CDW’s inventory lands a Zacks Rank #5 (Robust Promote) and the Bear of the Day as extra draw back danger could also be forward.
CDW’s Subpar Q3 Outcomes
Weighing on investor sentiment, CDW shares have plummeted sharply during the last month after Q3 earnings of $2.63 per share missed the Zacks EPS Consensus of $2.84 by -7%. Yr over 12 months, CDW’s backside line contracted from $2.72 a share in Q3 2023. Moreover, CDW has missed earnings expectations in three of its final 4 quarterly studies with a mean EPS shock of -4.73% throughout this era.
Picture Supply: Zacks Funding Analysis
This got here as CDW’s Q3 gross sales dipped to $5.51 billion in comparison with $5.62 billion within the comparative quarter and missed estimates of $5.71 billion by -3%. CDW has additionally missed prime line estimates in three of the final 4 quarters with a mean gross sales shock of -2.67%.
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Slower Demand & Elevated Competitors
Notably, CDW attributed its subpar Q3 outcomes to financial uncertainty and rising complexity within the know-how panorama, leading to slower buyer decision-making and undertaking delays.
CDW additionally alluded to elevated competitors and pricing depth throughout all of its finish markets with just a few of its notable rivals being Accenture ACN, Dell Applied sciences DELL, and IBM IBM.
Declining EPS Estimates
Suggesting the decline in CDW’s inventory may proceed is that fiscal 2024 earnings estimates have fallen 5% within the final 30 days to $9.46 per share in comparison with EPS estimates of $9.97 a month in the past. Extra regarding and taking away from CDW’s progress narrative is that FY25 EPS estimates have dipped greater than 2% within the final month.
Picture Supply: Zacks Funding Analysis
Backside Line
Working in a aggressive panorama, it might be finest to keep away from CDW’s inventory for now. To that time, CDW could also be dropping mojo however there are extra interesting choices in its broader Zacks Computer systems-IT Providers Business which is within the prime 19% out of 250 Zacks industries.
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CDW Corporation (CDW) : Free Stock Analysis Report
Accenture PLC (ACN) : Free Stock Analysis Report
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Dell Technologies Inc. (DELL) : Free Stock Analysis Report
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