CDW Q2 sales beat estimates on strong cloud and AI demand
CDW•Outlook and demand trends
CDW expects to exceed US IT addressable market growth by 200-300 basis points, constant currency.
The company said it sees strong demand for infrastructure, cloud, and AI-enabled technologies continuing, and that it will focus on balancing growth investments with operational efficiency.
Key quarterly figures and analyst view
| Metric | Beat/Miss | Actual | Consensus Estimate |
|---|---|---|---|
| Q2 Sales | Beat | $6.57 bln | $6.21 bln (8 Analysts) |
| Q2 Adjusted EPS | Beat | $2.91 | $2.80 (10 Analysts) |
| Q2 Adjusted Net Income | Beat | $370.40 mln | $360.42 mln (8 Analysts) |
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 8 "strong buy" or "buy", 4 "hold" and no "sell" or "strong sell." The average consensus recommendation for the integrated hardware & software peer group is "buy."
Wall Street's median 12-month price target for CDW Corporation is $147.00, about 4.5% below its August 4 closing price of $154.00. The stock recently traded at 14 times the next 12-month earnings versus a P/E of 13 three months ago.
Q2 sales and earnings beat expectations
US IT solutions provider CDW said second-quarter sales rose 10% year over year, beating analyst expectations. Adjusted earnings per share for the quarter also beat analyst expectations.
The company said Q2 growth was driven by demand for infrastructure modernization, cloud and AI technologies.
