NASDAQ$CDW

CDW Corp · Q2 2023 earnings

Q2 2023 earnings · · Investor relations

Briefing

CDW's financial performance reflected strong margins and execution, reinforcing the durability of its strategy.

CDW Corporation reported a decrease in net sales by 8.5% to $5,626.1 million, but an increase in gross profit by 1.1% to $1,181.5 million for the second quarter of 2023. Despite a decrease in operating and net income, non-GAAP operating income and non-GAAP net income increased, showcasing the company's financial discipline amid economic uncertainty.

  • Net sales decreased by 8.5% compared to the second quarter of 2022, mainly driven by declines in the Corporate and Small Business segments and in the UK and Canada.
  • Gross profit increased by 1.1% with gross profit margin rising to 21.0% due to higher product margin and a higher mix of netted down revenue.
  • Operating income decreased by 5.3%, while non-GAAP operating income increased by 2.6%.
  • Net income per diluted share decreased by 5.5%, but non-GAAP net income per diluted share increased by 3.2%.

Headline financials

Total Revenue

$5.63B

Previous: $6.15B-8.5%
EPS (adj)

$2.56

Previous: $2.49+2.8%
Non-GAAP Operating Income Margin

9.4%

Previous: 8.4%+11.9%
Operating Income Margin

7.3%

No prior period
Average Daily Sales

$188M

Previous: $196M-4.1%
Capital Expenditures

-$71.3M

Previous: -$63.6M-12.1%
Free Cash Flow

$191M

Previous: $216M-11.3%
Net Income

$263M

Previous: $279M-6.0%
Operating Income

$412M

Previous: $435M-5.3%
Gross Profit

$1.18B

Previous: $1.17B+1.1%
Cash & Equivalents

$204M

Previous: $542M-62.4%
Total Assets

$13B

Previous: $13.7B-4.9%

Revenue & EPS history

CDW · Revenue · Quarterly

$5.63B

Q2 2023-8.5%vs Q2 2022
Beat estimate in 8 of 15 quarters(53%)
ActualEstimate

Revenue by segment

CDW · $5.63B total across 4 segments · Q2 2023

  • Public
    $2.3B+2.3%
  • Corporate
    $2.25B-15.6%
  • Other (UK and Canada)
    $690M-7.0%
  • Small Business
    $396M-20.8%

Forward guidance

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

Tailwinds

  • Continue 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 as the IT market continues to evolve.

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 2023

Historical avgQ2 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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