Zacks Research Issues Negative Outlook for CDW Earnings

CDW Co. (NASDAQ:CDW - Free Report) - Zacks Research decreased their Q2 2025 earnings per share (EPS) estimates for shares of CDW in a research report issued to clients and investors on Wednesday, May 28th. Zacks Research analyst R. Department now anticipates that the information technology services provider will earn $2.41 per share for the quarter, down from their prior forecast of $2.43. The consensus estimate for CDW's current full-year earnings is $9.41 per share. Zacks Research also issued estimates for CDW's Q3 2025 earnings at $2.50 EPS, Q4 2025 earnings at $2.36 EPS, FY2025 earnings at $9.31 EPS, Q1 2026 earnings at $2.00 EPS, Q2 2026 earnings at $2.71 EPS, Q3 2026 earnings at $2.63 EPS, Q4 2026 earnings at $2.47 EPS, FY2026 earnings at $9.82 EPS, Q1 2027 earnings at $2.58 EPS and FY2027 earnings at $11.22 EPS.

CDW (NASDAQ:CDW - Get Free Report) last announced its earnings results on Wednesday, May 7th. The information technology services provider reported $2.15 EPS for the quarter, topping the consensus estimate of $1.96 by $0.19. CDW had a net margin of 5.13% and a return on equity of 55.42%. The business had revenue of $5.20 billion during the quarter, compared to analysts' expectations of $4.93 billion. During the same quarter in the prior year, the company posted $1.92 earnings per share. The firm's revenue was up 6.7% on a year-over-year basis.

Other research analysts have also recently issued reports about the company. JPMorgan Chase & Co. reduced their price target on CDW from $222.00 to $175.00 and set a "neutral" rating for the company in a research report on Thursday, April 17th. Morgan Stanley increased their price objective on CDW from $193.00 to $201.00 and gave the company an "equal weight" rating in a report on Thursday, February 6th. UBS Group cut their price target on shares of CDW from $236.00 to $210.00 and set a "buy" rating for the company in a research note on Thursday, May 8th. Barclays cut their price target on shares of CDW from $223.00 to $205.00 and set an "equal weight" rating for the company in a research note on Thursday, May 8th. Finally, Citigroup increased their price target on shares of CDW from $160.00 to $180.00 and gave the company a "neutral" rating in a research note on Thursday, May 8th. Four research analysts have rated the stock with a hold rating and four have assigned a buy rating to the company. According to MarketBeat, the stock presently has a consensus rating of "Moderate Buy" and an average price target of $216.38.

CDW Stock Down 0.6%

NASDAQ CDW traded down $1.05 during trading hours on Monday, hitting $175.75. 1,130,118 shares of the company traded hands, compared to its average volume of 1,226,224. The business's 50-day moving average is $167.31 and its 200-day moving average is $175.79. CDW has a twelve month low of $137.31 and a twelve month high of $241.26. The company has a debt-to-equity ratio of 2.38, a quick ratio of 1.24 and a current ratio of 1.35. The stock has a market capitalization of $23.14 billion, a price-to-earnings ratio of 22.05, a P/E/G ratio of 3.21 and a beta of 0.91.

Hedge Funds Weigh In On CDW

Several hedge funds and other institutional investors have recently made changes to their positions in the company. Franklin Resources Inc. raised its position in CDW by 12.7% during the fourth quarter. Franklin Resources Inc. now owns 121,757 shares of the information technology services provider's stock valued at $21,191,000 after purchasing an additional 13,748 shares in the last quarter. Madison Investment Advisors LLC acquired a new position in shares of CDW during the 4th quarter worth $130,996,000. Graphene Investments SAS raised its holdings in shares of CDW by 17.6% during the 4th quarter. Graphene Investments SAS now owns 17,400 shares of the information technology services provider's stock worth $3,028,000 after buying an additional 2,600 shares in the last quarter. Wellington Management Group LLP raised its stake in CDW by 29.2% during the fourth quarter. Wellington Management Group LLP now owns 2,538,775 shares of the information technology services provider's stock worth $441,848,000 after acquiring an additional 574,444 shares in the last quarter. Finally, Geode Capital Management LLC raised its stake in CDW by 1.6% during the fourth quarter. Geode Capital Management LLC now owns 3,535,405 shares of the information technology services provider's stock worth $614,220,000 after acquiring an additional 54,341 shares in the last quarter. 93.15% of the stock is currently owned by institutional investors and hedge funds.

Insider Transactions at CDW

In other news, insider Christine A. Leahy sold 40,917 shares of CDW stock in a transaction that occurred on Thursday, May 8th. The shares were sold at an average price of $181.42, for a total value of $7,423,162.14. Following the completion of the sale, the insider now directly owns 144,931 shares in the company, valued at approximately $26,293,382.02. The trade was a 22.02% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this link. Also, insider Frederick J. Kulevich sold 28,159 shares of CDW stock in a transaction on Tuesday, May 13th. The shares were sold at an average price of $190.90, for a total value of $5,375,553.10. Following the completion of the transaction, the insider now directly owns 36,077 shares of the company's stock, valued at $6,887,099.30. This represents a 43.84% decrease in their ownership of the stock. The disclosure for this sale can be found here. 0.84% of the stock is currently owned by corporate insiders.

CDW Announces Dividend

The business also recently announced a quarterly dividend, which will be paid on Tuesday, June 10th. Stockholders of record on Monday, May 26th will be paid a dividend of $0.625 per share. This represents a $2.50 dividend on an annualized basis and a dividend yield of 1.42%. The ex-dividend date of this dividend is Friday, May 23rd. CDW's dividend payout ratio is presently 30.98%.

CDW declared that its Board of Directors has approved a stock buyback program on Wednesday, February 5th that allows the company to buyback $750.00 million in shares. This buyback authorization allows the information technology services provider to reacquire up to 2.7% of its shares through open market purchases. Shares buyback programs are typically an indication that the company's management believes its shares are undervalued.

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.