CDW Stock Gaining on Solid Q2 Earnings

NEW YORK (TheStreet) -- Shares of CDW (CDW) were rising in late-afternoon trading on Wednesday after the company's earnings and revenue topped analysts' estimates for the 2016 second quarter.

Before today's opening bell, the Vernon Hills, IL-based IT solutions provider posted adjusted earnings of 93 cents per share, surpassing analysts' forecasts of 85 cents per share.

Revenue increased 10.6% to $3.66 billion from last year. Analysts were looking for $3.65 billion.

"We delivered solid topline growth with excellent profitability in a challenging market," CEO Thomas Richards said in a statement.

"We continue to benefit from our investment in delivering fast growing integrated solutions, including security, cloud and flash storage, which are leading growth across the company," he added.

The company provides technology solutions to the business, government, education and healthcare sectors in the U.S., Canada and the U.K.

Separately, TheStreet Ratings Team has a "Buy" rating with a score of B on the stock.

The company's strengths can be seen in multiple areas, such as its revenue growth, notable return on equity, good cash flow from operations, solid stock price performance and impressive record of earnings per share growth.

The team believes its strengths outweigh the fact that the company shows low profit margins.

Recently, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author.

You can view the full analysis from the report here: CDW

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