CDW's 3Q24 results were disappointing, with revenue declining and guidance lowered. The company's heavy exposure to hardware, which is facing weaker demand, is a headwind. As the market focuses on near-term growth, CDW's valuation could face significant downside pressure.
CDW Corporation (NASDAQ:CDW ) Q3 2024 Earnings Conference Call October 30, 2024 8:30 AM ET Company Participants Steve O'Brien - Vice President-Investor Relations Chris Leahy - Chair and Chief Executive Officer Al Miralles - Senior Vice President and Chief Financial Officer Conference Call Participants Adam Tindle - Raymond James David Vogt - UBS Erik Woodring - Morgan Stanley Amit Daryanani - Evercore Matt Sheerin - Stifel Keith Housum - Northcoast Research Samik Chatterjee - JPMorgan Operator Good morning all, and thank you for joining us for the CDW Third Quarter 2024 Earnings Call. My name is Carly, and I'll be coordinating your call today.
CDW's Q3 2024 performance is affected by continued weakness across the Corporate and Public businesses, offset by a slight gain in the Small Business unit.
While the top- and bottom-line numbers for CDW (CDW) give a sense of how the business performed in the quarter ended September 2024, it could be worth looking at how some of its key metrics compare to Wall Street estimates and year-ago values.
CDW (CDW) came out with quarterly earnings of $2.63 per share, missing the Zacks Consensus Estimate of $2.84 per share. This compares to earnings of $2.72 per share a year ago.
IT solutions provider CDW missed third-quarter revenue estimates on Wednesday due to reduced demand for its hardware solutions, as clients curtailed spending amid inflationary pressures, sending its shares down 7.2% in premarket trading.
Get a deeper insight into the potential performance of CDW (CDW) for the quarter ended September 2024 by going beyond Wall Street's top -and-bottom-line estimates and examining the estimates for some of its key metrics.
CDW's third-quarter performance is likely to have been cushioned by demand for cloud and security solutions amid macroeconomic volatility.
For dividend-paying companies, maintaining dividend growth is an essential way to demonstrate to investors that a firm is stable and enjoys long-term profitability. Dividend growth is also attractive to investors because it means an increasing passive income stream through stock ownership.
For dividend-paying companies, maintaining dividend growth is an essential way to demonstrate to investors that a firm is stable and enjoys long-term profitability. Dividend growth is also attractive to investors because it means an increasing passive income stream through stock ownership.
CDW (CDW) reported earnings 30 days ago. What's next for the stock?
CDW Corporation continues to be rated as a buy with positive growth catalysts. Despite revenue declines, CDW managed to expand gross margin, supporting the potential for further margin expansion. Signs of recovery are emerging, with improving customer spend and conversion rates, indicating potential growth acceleration in 2H24.