Zacks Research Issues Pessimistic Forecast for CDW Earnings

CDW Co. (NASDAQ:CDW) – Zacks Research reduced their Q2 2025 earnings estimates for shares of CDW in a note issued to investors on Wednesday, May 28th. Zacks Research analyst R. Department now forecasts 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) last announced its quarterly earnings results on Wednesday, May 7th. The information technology services provider reported $2.15 earnings per share for the quarter, beating 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 for the quarter, compared to analysts’ expectations of $4.93 billion. During the same quarter last year, the firm earned $1.92 EPS. The firm’s revenue for the quarter was up 6.7% compared to the same quarter last year.

Several other brokerages have also recently weighed in on CDW. JPMorgan Chase & Co. dropped their price target on shares of CDW from $222.00 to $175.00 and set a “neutral” rating on the stock in a research report on Thursday, April 17th. UBS Group dropped their price target on shares of CDW from $236.00 to $210.00 and set a “buy” rating on the stock in a research report on Thursday, May 8th. Citigroup raised their price target on shares of CDW from $160.00 to $180.00 and gave the company a “neutral” rating in a research report on Thursday, May 8th. Morgan Stanley raised their price target on shares of CDW from $193.00 to $201.00 and gave the company an “equal weight” rating in a research report on Thursday, February 6th. Finally, Barclays dropped their price target on shares of CDW from $223.00 to $205.00 and set an “equal weight” rating on the stock in a research report on Thursday, May 8th. Four equities research analysts have rated the stock with a hold rating and four have issued a buy rating to the stock. According to MarketBeat.com, CDW presently has an average rating of “Moderate Buy” and a consensus price target of $216.38.

CDW Price Performance

Shares of NASDAQ CDW opened at $174.76 on Monday. CDW has a fifty-two week low of $137.31 and a fifty-two week high of $241.26. The stock has a market cap of $23.01 billion, a price-to-earnings ratio of 21.93, a PEG ratio of 3.21 and a beta of 0.91. 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 firm’s 50-day simple moving average is $166.39 and its 200 day simple moving average is $175.78.

Institutional Investors Weigh In On CDW

Several large investors have recently modified their holdings of CDW. Blue Trust Inc. increased its stake in shares of CDW by 35.8% during the 4th quarter. Blue Trust Inc. now owns 1,859 shares of the information technology services provider’s stock worth $324,000 after purchasing an additional 490 shares during the last quarter. Robeco Institutional Asset Management B.V. increased its stake in shares of CDW by 9.7% during the 4th quarter. Robeco Institutional Asset Management B.V. now owns 18,471 shares of the information technology services provider’s stock worth $3,215,000 after purchasing an additional 1,629 shares during the last quarter. Mediolanum International Funds Ltd increased its stake in shares of CDW by 53.4% during the 4th quarter. Mediolanum International Funds Ltd now owns 31,336 shares of the information technology services provider’s stock worth $5,419,000 after purchasing an additional 10,902 shares during the last quarter. Waldron Private Wealth LLC increased its stake in shares of CDW by 103.0% during the 4th quarter. Waldron Private Wealth LLC now owns 3,366 shares of the information technology services provider’s stock worth $586,000 after purchasing an additional 1,708 shares during the last quarter. Finally, China Universal Asset Management Co. Ltd. increased its stake in shares of CDW by 28.0% during the 4th quarter. China Universal Asset Management Co. Ltd. now owns 2,169 shares of the information technology services provider’s stock worth $377,000 after purchasing an additional 475 shares during the last quarter. Hedge funds and other institutional investors own 93.15% of the company’s stock.

Insider Buying and Selling at CDW

In other news, insider Christine A. Leahy sold 40,917 shares of the firm’s stock in a transaction that occurred on Thursday, May 8th. The shares were sold at an average price of $181.42, for a total transaction of $7,423,162.14. Following the completion of the sale, the insider now owns 144,931 shares in the company, valued at $26,293,382.02. This trade represents a 22.02% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available at this hyperlink. Also, insider Frederick J. Kulevich sold 28,159 shares of the firm’s stock in a transaction that occurred on Tuesday, May 13th. The stock was sold at an average price of $190.90, for a total transaction of $5,375,553.10. Following the sale, the insider now owns 36,077 shares of the company’s stock, valued at approximately $6,887,099.30. The trade was a 43.84% decrease in their position. The disclosure for this sale can be found here. Company insiders own 0.84% of the company’s stock.

CDW announced that its Board of Directors has initiated a stock buyback program on Wednesday, February 5th that authorizes the company to buyback $750.00 million in shares. This buyback authorization authorizes the information technology services provider to buy up to 2.7% of its stock through open market purchases. Stock buyback programs are generally an indication that the company’s leadership believes its stock is undervalued.

CDW Announces Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Tuesday, June 10th. Shareholders of record on Monday, May 26th will be paid a $0.625 dividend. The ex-dividend date of this dividend is Friday, May 23rd. This represents a $2.50 annualized dividend and a yield of 1.43%. CDW’s dividend payout ratio (DPR) is 30.98%.

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.