NASDAQ$CDW

CDW Corp · Q1 2023 earnings

Q1 2023 earnings · · Investor relations

Briefing

CDW's Q1 2023 earnings were pressured by IT demand contraction, while record first-quarter profit margins reinforced the durability of the company's strategy.

CDW Corporation reported a 14.2% decrease in net sales, totaling $5,103.1 million for the first quarter of 2023, compared to $5,949.1 million in the first quarter of 2022. Despite the revenue decline, the company achieved record first-quarter margins, driven by higher product margins and a favorable mix of netted-down revenue. The company remains confident in its ability to deliver profitability, margins, and cash flow.

  • Total Net sales decreased by 14.2% compared to Q1 2022, amounting to $5,103 million.
  • Gross profit margin increased to 21.3% compared to 18.6% in Q1 2022.
  • Operating income decreased by 8.2% to $355 million.
  • Non-GAAP operating income margin was 8.5% versus 7.8% for the first quarter of 2022.

Headline financials

Total Revenue

$5.1B

Previous: $5.95B-14.2%
EPS (adj)

$2.03

Previous: $2.20-7.7%
Capital Expenditures

-$31.7M

Previous: -$41.3M+23.2%
Free Cash Flow

$198M

Previous: $209M-5.0%
Net Income

$230M

Previous: $250M-8.0%
Operating Income

$355M

Previous: $387M-8.2%
Gross Profit

$1.09B

Previous: $1.1B-1.3%
Cash & Equivalents

$279M

Previous: $387M-27.8%
Total Assets

$12.8B

Previous: $13.5B-5.5%

Revenue & EPS history

CDW · Revenue · Quarterly

$5.1B

Q1 2023-14.2%vs Q1 2022
Beat estimate in 8 of 15 quarters(53%)
ActualEstimate

Revenue by segment

CDW · $5.1B total across 4 segments · Q1 2023

  • Corporate
    $2.2B-16.1%
  • Public
    $1.81B-10.8%
  • Other (UK and Canada)
    $675M-11.7%
  • Small Business
    $411M-21.5%

Forward guidance

CDW is well-positioned to attain its target of exceeding US IT market growth by 200 to 300 basis points on a constant currency basis.

Tailwinds

  • Stronger engagement with customers and partners.
  • Laser focus on meeting the needs of more than 250,000 customers around the globe.
  • Remaining the partner of choice for more than 1,000 leading and emerging technology brands.
  • Resilient business model.
  • Financial discipline.

Headwinds

  • Economic uncertainty built during the quarter.
  • Deeper than expected demand contraction.
  • Lower business volume.
  • Unfavorable translation of the British pound and Canadian dollar to US dollar.
  • Increased payroll expenses as a result of higher coworker count.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q1 2023

Historical avgQ1 2023

+1.1%

Avg return

Earnings day

+0.3%

Avg return

5 days after

+1.5%

Avg return

30 days after

61%

31 / 51 earnings

Positive

+11.2%

Q3 2018

Best reaction

-14.4%

Q3 2024

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+2.2%-25.0%-2.7%
Q4 2025+9.4%+13.7%-2.2%
Q3 2025-8.7%-8.0%-6.6%
Q1 2025+7.1%+15.2%+8.7%
Q4 2024+3.4%-3.9%-15.5%
Q3 2024-14.4%-13.1%-20.0%
Q2 2024-8.1%-11.1%-2.9%
Q1 2024-9.7%-8.3%-7.5%
Q4 2023+5.8%+5.0%+7.6%
Q3 2023+3.1%+5.3%+6.1%
Q2 2023+6.4%+8.3%+13.8%
Q1 2023-2.4%-1.0%+3.8%
Q4 2022+2.0%+6.0%-4.4%
Q3 2022+0.1%-0.2%+10.1%
Q2 2022-0.2%-1.0%-6.6%
Q1 2022+2.1%-1.7%+4.7%
Q4 2021-5.8%-9.6%-12.7%
Q3 2021-2.2%-2.1%+1.3%
Q2 2021+2.9%+2.3%+9.4%
Q1 2021-2.1%-2.8%-5.0%
Q4 2020+3.5%+2.5%+5.6%
Q3 2020+6.6%+12.6%+7.0%
Q2 2020-4.0%-5.5%-4.4%
Q1 2020-3.0%-4.6%+14.0%
Q4 2019-2.5%-0.1%-18.0%
Q3 2019+3.0%+6.6%+6.0%
Q2 2019+4.3%-5.3%+1.7%
Q1 2019+2.0%+3.3%-6.8%
Q4 2018+5.8%+8.6%+8.1%
Q3 2018+11.2%+9.3%+15.5%
Q2 2018+1.6%+2.5%+4.4%
Q1 2018+2.9%+5.5%+11.9%
Q4 2017-5.7%-6.7%+1.6%
Q3 2017+0.0%+0.3%-1.2%
Q2 2017-0.8%+0.0%-2.7%
Q1 2017+0.2%-0.0%+3.7%
Q4 2016+7.0%+9.9%+11.5%
Q3 2016-2.5%+0.3%+17.0%
Q2 2016+3.9%+5.5%+5.0%
Q1 2016+5.6%
Q4 2015-1.6%
Q3 2015+4.0%
Q2 2015+8.8%
Q1 2015-5.0%
Q4 2014-0.2%
Q3 2014+4.0%
Q2 2014-1.0%
Q1 2014+5.6%
Q4 2013+2.7%
Q3 2013+4.3%
Q2 2013+5.2%
Q1 2013
Q4 2012
Q3 2012
Q2 2012
Q1 2012
Q4 2011
Q3 2011
Q4 2010
Q2 2011
Q1 2011
Q3 2010
Q2 2010
Q1 2010

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