NASDAQ$CDW

CDW Corp · Q2 2022 earnings

Q2 2022 earnings · · Investor relations

Briefing

CDW's Q2 2022 financial performance, marked by substantial growth in net sales and profitability, driven by strategic acquisitions and effective customer engagement.

CDW Corporation reported strong second-quarter results, with net sales increasing by 19.4% to $6,146 million. The company's performance was bolstered by the acquisition of Sirius Computer Solutions and strong execution across its corporate, small business, and public segments. CDW's ability to meet evolving customer needs in a supply-constrained environment drove significant profit growth, with non-GAAP EPS increasing by 23.0%.

  • Net sales increased by 19.4% year-over-year to $6,146 million, driven by growth across all segments and the acquisition of Sirius Computer Solutions.
  • Gross profit increased by 32.3% to $1,168 million, with gross profit margin improving to 19.0% due to favorable product mix and higher netted down revenue.
  • Non-GAAP operating income increased by 23.5% to $516 million, with non-GAAP operating income margin improving to 8.4%.
  • Non-GAAP net income per diluted share increased by 23.0% to $2.49, reflecting strong operating results and disciplined capital allocation.

Headline financials

Total Revenue

$6.15B

Previous: $5.15B+19.4%
EPS (adj)

$2.49

Previous: $2.02+23.3%
Non-GAAP Operating Income Margin

8.4%

Previous: 8.1%+3.7%
Gross Profit Margin

19.0%

No prior period
Average Daily Sales

$196M

Previous: $180M+8.6%
Capital Expenditures

-$63.6M

Previous: -$38.5M-65.2%
Free Cash Flow

$216M

Previous: $236M-8.4%
Net Income

$279M

Previous: $274M+1.9%
Operating Income

$435M

Previous: $370M+17.7%
Gross Profit

$1.17B

Previous: $883M+32.3%
Cash & Equivalents

$542M

Previous: $501M+8.1%
Total Assets

$13.7B

Previous: $8.99B+51.9%

Revenue & EPS history

CDW · Revenue · Quarterly

$6.15B

Q2 2022+19.4%vs Q2 2021
Beat estimate in 8 of 15 quarters(53%)
ActualEstimate

Revenue by segment

CDW · $6.15B total across 4 segments · Q2 2022

  • Corporate
    $2.66B+34.2%
  • Public
    $2.24B+7.8%
  • Other (UK and Canada)
    $742M+23.8%
  • Small Business
    $500M+3.5%

Forward guidance

CDW expects to exceed its initial 2022 outlook, projecting to outpace US IT market growth by 200 to 300 basis points on a constant currency basis.

Tailwinds

  • Exceed initial 2022 outlook
  • Outpace US IT market growth by 200 to 300 basis points
  • Continue to execute strategy
  • Invest in the business
  • Laser-focused on meeting customer needs

Headwinds

  • COVID-19 pandemic, including resurgences and the emergence of new variants
  • Inflationary pressures
  • Level of interest rates
  • Relationships with vendor partners and terms of their agreements
  • Substantial competition that could reduce CDW's market share

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 Q2 2022

Historical avgQ2 2022

+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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