CDW (NASDAQ:CDW) Posts Earnings Results, Beats Estimates By $0.07 EPS

CDW (NASDAQ:CDW) released its quarterly earnings results on Wednesday. The information technology services provider reported $2.40 earnings per share (EPS) for the quarter, topping 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 Stock Performance

Shares of CDW stock opened at $199.86 on Friday. The firm has a market capitalization of $26.63 billion, a price-to-earnings ratio of 24.43, a price-to-earnings-growth ratio of 5.39 and a beta of 1.01. The company has a 50 day moving average price of $183.54 and a 200 day moving average price of $202.63. CDW has a one year low of $168.43 and a one year high of $263.37. The company has a debt-to-equity ratio of 2.39, a quick ratio of 1.28 and a current ratio of 1.40.

CDW Announces Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Tuesday, March 11th. Stockholders of record on Tuesday, February 25th will be issued a dividend of $0.625 per share. The ex-dividend date is Tuesday, February 25th. This represents a $2.50 annualized dividend and a dividend yield of 1.25%. CDW’s payout ratio is currently 30.56%.

CDW announced that its board has initiated a share repurchase plan on Wednesday, February 5th that authorizes the company to repurchase $750.00 million in shares. This repurchase authorization authorizes the information technology services provider to repurchase up to 2.7% of its stock through open market purchases. Stock repurchase plans are typically an indication that the company’s board believes its shares are undervalued.

Analyst Ratings Changes

A number of equities analysts have issued reports on CDW shares. Redburn Atlantic started coverage on shares of CDW in a research report on Friday, November 15th. They set a “buy” rating and a $230.00 target price for the company. Morgan Stanley upped their target price on CDW from $193.00 to $201.00 and gave the company an “equal weight” rating in a research note on Thursday. Barclays increased their target price on CDW from $201.00 to $223.00 and gave the company an “equal weight” rating in a report on Thursday. JPMorgan Chase & Co. downgraded CDW from an “overweight” rating to a “neutral” rating and reduced their price objective for the company from $260.00 to $235.00 in a research report on Monday, October 28th. Finally, UBS Group decreased their price objective 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 research analysts have rated the stock with a hold rating and five have given a buy rating to the company. Based on data from MarketBeat, the stock presently has an average rating of “Moderate Buy” and a consensus price target of $242.67.

CDW Company Profile

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.