Unveiling Q4 Results: How CDW (NASDAQ:CDW) Compares With Other IT Distribution & Solutions Companies

Quarterly Review: IT Distribution & Solutions Sector Performance

Quarterly earnings provide a valuable opportunity to evaluate a company’s trajectory, especially when compared to others in the same field. This report examines CDW (NASDAQ:CDW) alongside other notable players in the IT distribution and solutions industry, highlighting both top and bottom performers.

Industry Overview

The IT distribution and solutions sector continues to benefit from the growing complexity of technology environments, increased adoption of cloud services, and heightened demand for cybersecurity. Organizations are increasingly turning to specialized providers for guidance through these intricate transitions, leveraging their expertise and scale. However, as more businesses migrate to the cloud, the need for physical hardware may decrease, potentially impacting sales and profit margins. Additionally, companies remain vigilant about potential supply chain disruptions, a lesson underscored by the challenges faced during the COVID-19 pandemic, particularly in semiconductor sourcing.

Q4 Earnings Snapshot

Among the seven IT distribution and solutions companies tracked, the group delivered a robust fourth quarter. Collectively, their revenues surpassed analyst forecasts by 1.9%, though projections for the upcoming quarter’s revenue were 0.6% lower than expected.

Despite these results, share prices across the sector have remained largely stable, with little movement since the earnings announcements.

CDW (NASDAQ:CDW) Highlights

Since 1984, CDW has played a pivotal role connecting technology manufacturers with end users, offering a broad range of IT solutions to businesses and public sector clients. The company assists organizations in choosing, deploying, and managing hardware, software, and IT services.

For the latest quarter, CDW reported revenue of $5.51 billion, marking a 6.3% increase year-over-year and exceeding analyst expectations by 3.1%. The company not only outperformed revenue estimates but also delivered higher-than-expected earnings per share.

Christine A. Leahy, CDW’s chair and CEO, commented: “Our team closed out a dynamic year on a high note, delivering significant value and mission-critical outcomes for our customers across the entire IT landscape.”

Following the earnings release, CDW’s stock has declined by 2.8%, currently trading at $122.56.

Curious whether CDW is a good investment right now?

Top Performer: ePlus (NASDAQ:PLUS)

Originally established as a financing firm in 1990, ePlus has evolved into a full-service technology provider, delivering end-to-end IT solutions, professional services, and financing to help organizations enhance their technology infrastructure and supply chain management.

ePlus posted revenue of $614.8 million for the quarter, a remarkable 24.6% increase from the previous year and 11.4% above analyst projections. The company not only exceeded revenue expectations but also delivered a strong earnings per share beat.

ePlus achieved the highest revenue growth and the largest positive surprise relative to analyst estimates among its peers. Despite these achievements, the stock has dropped 9.7% since the earnings report and is now priced at $77.77.

Interested in a deeper dive on ePlus?

Lowest Performer: ScanSource (NASDAQ:SCSC)

Since 1992, ScanSource has served as a vital intermediary in the technology supply chain, distributing hardware, software, and cloud services from suppliers to resellers and business customers.

For the quarter, ScanSource reported revenue of $766.5 million, a modest 2.5% year-over-year increase but 2% below analyst expectations. The company also issued full-year revenue guidance that significantly missed forecasts, resulting in a disappointing quarter overall.

Reflecting these results, ScanSource’s stock has fallen 17.4% since the earnings release and is currently valued at $36.63.

Read our full analysis of ScanSource’s performance here.

Avnet (NASDAQ:AVT) Overview

With a legacy spanning over 100 years, Avnet is a global distributor of electronic components, linking semiconductor and electronic part manufacturers with businesses in need of these products.

Avnet reported quarterly revenue of $6.32 billion, representing an 11.6% year-over-year increase and surpassing analyst estimates by 4.5%. The company also provided next quarter revenue guidance above expectations, delivering a strong performance overall.

Since the earnings announcement, Avnet’s share price has surged 27.2% to $67.01.

Read our detailed, actionable report on Avnet here for free.

TD SYNNEX (NYSE:SNX) Insights

TD SYNNEX acts as a key facilitator in the technology supply chain, connecting thousands of IT manufacturers with resellers and providing access to hardware, software, and technology solutions worldwide.

For the quarter, TD SYNNEX reported revenue of $17.38 billion, up 9.7% from the previous year and 2.6% above analyst expectations. The company also beat both revenue and earnings per share guidance for the next quarter.

TD SYNNEX shares have risen 5.2% since the earnings release, now trading at $158.75.

Explore our full, actionable report on TD SYNNEX here, free of charge.

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The StockStory analyst team, comprised of experienced professional investors, leverages quantitative analysis and automation to deliver timely, high-quality market insights.