The end of an earnings season can be a great time to discover new stocks and assess how companies are handling the current business environment. Let’s take a look at how ePlus (NASDAQ: PLUS) and the rest of the it distribution & solutions stocks fared in Q4.
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 softer Q4. As a group, revenues missed analysts’ consensus estimates by 2.7% while next quarter’s revenue guidance was in line.
Amidst this news, share prices of the companies have had a rough stretch. On average, they are down 19.3% since the latest earnings results.
Weakest Q4: 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 $511 million, flat year on year. This print fell short of analysts’ expectations by 7.7%. Overall, it was a disappointing quarter for the company with a significant miss of analysts’ EPS estimates.
The stock is down 29.5% since reporting and currently trades at $57.15.
Read our full report on ePlus here, it’s free.
Best Q4: 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 $5.19 billion, up 3.3% year on year, outperforming analysts’ expectations by 2.9%. The business had a very strong quarter with an impressive beat of analysts’ EPS estimates.
CDW achieved the biggest analyst estimates beat among its peers. Although it had a fine quarter compared its peers, the market seems unhappy with the results as the stock is down 21.8% since reporting. It currently trades at $156.01.
Is now the time to buy CDW? Access our full analysis of the earnings results here, it’s free.
Insight Enterprises (NASDAQ: NSIT)
With over 35 years of IT expertise and partnerships with more than 8,000 technology providers, Insight Enterprises (NASDAQ: NSIT) provides end-to-end digital transformation solutions that help businesses modernize their IT infrastructure and maximize the value of technology.
Insight Enterprises reported revenues of $2.07 billion, down 7.3% year on year, falling short of analysts’ expectations by 4.7%. It was a disappointing quarter as it posted a significant miss of analysts’ full-year EPS guidance estimates.
As expected, the stock is down 17.6% since the results and currently trades at $143.26.
Read our full analysis of Insight Enterprises’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 $14.53 billion, up 4% year on year. This number came in 1.7% below analysts' expectations. Overall, it was a softer quarter as it also logged a miss of analysts’ EPS estimates.
TD SYNNEX pulled off the fastest revenue growth among its peers. The stock is down 16.3% since reporting and currently trades at $104.99.
Read our full, actionable report on TD SYNNEX here, it’s free.
ScanSource (NASDAQ: SCSC)
Operating as a crucial link in the technology supply chain since 1992, ScanSource (NASDAQ: SCSC) is a hybrid distributor that connects hardware, software, and cloud services from technology suppliers to resellers and business customers.
ScanSource reported revenues of $747.5 million, down 15.5% year on year. This result lagged analysts' expectations by 11.8%. Overall, it was a softer quarter as it also produced a significant miss of analysts’ EPS estimates.
ScanSource had the weakest performance against analyst estimates and slowest revenue growth among its peers. The stock is down 35.5% since reporting and currently trades at $32.19.
Read our full, actionable report on ScanSource here, it’s free.
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