Wrapping up Q3 earnings, we look at the numbers and key takeaways for the it distribution & solutions stocks, including CDW (NASDAQ: CDW) and its peers.

IT Distribution & Solutions will be buoyed by the increasing complexity of IT ecosystems, rising cloud adoption, and demand for cybersecurity solutions. Enterprises are less likely than ever to embark on these complicated journeys solo, and companies in the sector boast expertise and scale in these areas. However, cloud migration also means less need for hardware, which could dent demand for large portions of the product portfolio and hurt margins. Additionally, planning for potentially supply chain disruptions is ongoing, as the COVID-19 pandemic showed how damaging a pause in global trade could be in areas like semiconductor procurement.

The 8 it distribution & solutions stocks we track reported a satisfactory Q3. As a group, revenues beat analysts’ consensus estimates by 1.3% while next quarter’s revenue guidance was in line.

While some it distribution & solutions stocks have fared somewhat better than others, they have collectively declined. On average, share prices are down 2.7% since the latest earnings results.

CDW (NASDAQ: CDW)

Serving as a crucial bridge between technology manufacturers and end users since 1984, CDW (NASDAQ: CDW) is a multi-brand provider of information technology solutions that helps businesses and public sector organizations select, implement, and manage hardware, software, and IT services.

CDW reported revenues of $5.74 billion, up 4% year on year. This print was in line with analysts’ expectations, but overall, it was a mixed quarter for the company with a beat of analysts’ EPS estimates but revenue in line with analysts’ estimates.

"The team delivered resilient performance in Q3 as we continued to guide customers through evolving market dynamics and deliver mission critical outcomes across the full IT stack and lifecycle," said Christine A. Leahy, chair and chief executive officer, CDW.

The stock is down 13.1% since reporting and currently trades at $134.62.

Is now the time to buy CDW? Access our full analysis of the earnings results here, it’s free for active Edge members.

Best Q3: ePlus (NASDAQ: PLUS)

Starting as a financing company in 1990 before evolving into a full-service technology provider, ePlus (NASDAQ: PLUS) provides comprehensive IT solutions, professional services, and financing options to help organizations optimize their technology infrastructure and supply chain processes.

ePlus reported revenues of $608.8 million, up 23.4% year on year, outperforming analysts’ expectations by 17.5%. The business had an incredible quarter with a beat of analysts’ EPS and revenue estimates.

ePlus scored the biggest analyst estimates beat and fastest revenue growth among its peers. The market seems happy with the results as the stock is up 19.1% since reporting. It currently trades at $87.41.

Is now the time to buy ePlus? Access our full analysis of the earnings results here, it’s free for active Edge members.

Weakest Q3: Connection (NASDAQ: CNXN)

Starting as a small computer products seller in 1982 and evolving into a Fortune 1000 company, Connection (NASDAQ: CNXN) is a technology solutions provider that helps businesses and government agencies design, purchase, implement, and manage their IT infrastructure and systems.

Connection reported revenues of $709.1 million, down 2.2% year on year, falling short of analysts’ expectations by 4.7%. It was a disappointing quarter as it posted a significant miss of analysts’ revenue and EPS estimates.

As expected, the stock is down 5.3% since the results and currently trades at $57.65.

Read our full analysis of Connection’s results here.

TD SYNNEX (NYSE: SNX)

Serving as the crucial middleman in the technology supply chain, TD SYNNEX (NYSE: SNX) is a global technology distributor that connects thousands of IT manufacturers with resellers, helping businesses access hardware, software, and technology solutions.

TD SYNNEX reported revenues of $15.65 billion, up 6.6% year on year. This print topped analysts’ expectations by 3.5%. It was a stunning quarter as it also recorded a beat of analysts’ EPS estimates and an impressive beat of analysts’ EPS guidance for next quarter estimates.

The stock is up 1.2% since reporting and currently trades at $152.22.

Read our full, actionable report on TD SYNNEX here, it’s free for active Edge members.

Avnet (NASDAQ: AVT)

With a century-long history of adapting to technological evolution, Avnet (NASDAQ: AVT) is a global electronic components distributor that connects manufacturers of semiconductors and other electronic parts with businesses that need these components.

Avnet reported revenues of $5.90 billion, up 5.3% year on year. This number beat analysts’ expectations by 3%. Overall, it was a strong quarter as it also logged revenue guidance for next quarter exceeding analysts’ expectations and a solid beat of analysts’ revenue estimates.

The stock is down 2.6% since reporting and currently trades at $49.25.

Read our full, actionable report on Avnet here, it’s free for active Edge members.

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