CDW (NASDAQ:CDW) Announces Quarterly Earnings Results, Beats Expectations By $0.07 EPS

CDW (NASDAQ:CDW) released its quarterly earnings data on Wednesday. The information technology services provider reported $2.40 earnings per share (EPS) for the quarter, beating the consensus estimate of $2.33 by $0.07, Zacks reports. CDW had a return on equity of 58.31% and a net margin of 5.33%.

CDW Price Performance

Shares of NASDAQ CDW traded down $6.79 during mid-day trading on Thursday, hitting $199.35. 131,411 shares of the stock traded hands, compared to its average volume of 1,397,158. The company has a market cap of $26.56 billion, a PE ratio of 24.45, a price-to-earnings-growth ratio of 5.39 and a beta of 1.01. The company has a debt-to-equity ratio of 2.39, a current ratio of 1.40 and a quick ratio of 1.28. CDW has a twelve month low of $168.43 and a twelve month high of $263.37. The firm has a 50 day simple moving average of $183.08 and a two-hundred day simple moving average of $202.65.

CDW Announces Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Tuesday, March 11th. Investors of record on Tuesday, February 25th will be issued a dividend of $0.625 per share. This represents a $2.50 annualized dividend and a dividend yield of 1.25%. CDW’s dividend payout ratio (DPR) is 30.56%.

Analyst Ratings Changes

CDW has been the topic of a number of recent research reports. JPMorgan Chase & Co. lowered CDW from an “overweight” rating to a “neutral” rating and lowered their target price for the stock from $260.00 to $235.00 in a research note on Monday, October 28th. Redburn Atlantic initiated coverage on CDW in a research note on Friday, November 15th. They set a “buy” rating and a $230.00 target price on the stock. Barclays increased their target price on CDW from $201.00 to $223.00 and gave the stock an “equal weight” rating in a research note on Thursday. Morgan Stanley increased their target price on CDW from $193.00 to $201.00 and gave the stock an “equal weight” rating in a research note on Thursday. Finally, UBS Group lowered their target price on CDW from $233.00 to $220.00 and set a “buy” rating on the stock in a research note on Tuesday, January 7th. Four investment analysts have rated the stock with a hold rating and five have assigned a buy rating to the company’s stock. According to data from MarketBeat, the company presently has a consensus rating of “Moderate Buy” and a consensus target price of $242.67.

CDW announced that its board has authorized a stock buyback plan on Wednesday, February 5th that permits the company to buyback $750.00 million in outstanding shares. This buyback authorization permits the information technology services provider to reacquire up to 2.7% of its shares through open market purchases. Shares buyback plans are generally an indication that the company’s leadership believes its stock is 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.