NASDAQ$CDW

CDW Corp · Q2 2024 earnings

Q2 2024 earnings · · Investor relations

Briefing

Second quarter results were reported with strong margins driven by strategic investments, while economic uncertainty impacted solutions spend.

CDW Corporation reported a decrease in net sales by 3.6% to $5,423.4 million. Despite the revenue decline, the company saw an increase in operating income by 5.1% to $433.1 million and net income by 7.0% to $281.1 million. EPS increased to $2.07 from $1.92 year over year.

  • Net sales decreased by 3.6% year-over-year, totaling $5,423.4 million.
  • Gross profit remained relatively consistent at $1,183.1 million, with gross profit margin increasing to 21.8%.
  • Operating income increased by 5.1% to $433.1 million.
  • Net income increased by 7.0% to $281.1 million, with net income per diluted share increasing to $2.07.

Headline financials

Total Revenue

$5.42B

Previous: $5.63B-3.6%
EPS

$2.07

Previous: $2.56-19.1%
Non-GAAP Operating Income Margin

9.4%

Previous: 9.4%+0.0%
Gross Profit Margin

21.8%

No prior period
Operating Income Margin

8.0%

Previous: 7.3%+9.6%
Average Daily Sales

$84.7M

Previous: $188M-54.9%
Effective Income Tax Rate

26.0%

No prior period
Capital Expenditures

-$60.4M

Previous: -$71.3M+15.3%
Free Cash Flow

$221M

Previous: $191M+15.4%
Net Income

$281M

Previous: $263M+7.0%
Operating Income

$433M

Previous: $412M+5.1%
Gross Profit

$1.18B

Previous: $1.18B+0.1%
Cash & Equivalents

$665M

Previous: $204M+226.3%
Total Assets

$13.6B

Previous: $13B+5.0%

Revenue & EPS history

CDW · Revenue · Quarterly

$5.42B

Q2 2024-3.6%vs Q2 2023
Beat estimate in 8 of 15 quarters(53%)
ActualEstimate

Revenue by segment

CDW · $5.63B total across 4 segments · Q3 2023

  • Public
    $2.42B-0.1%
  • Corporate
    $2.23B-13.6%
  • Other (UK and Canada)
    $601M-16.7%
  • Small Business
    $378M-23.0%

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

  • Customers continue to turn to CDW to address their mission-critical IT and operational needs across the full IT solutions stack and lifecycle.
  • CDW is focused on meeting the needs of more than 250,000 customers around the globe.
  • CDW aims to remain the partner of choice for more than 1,000 leading and emerging technology brands.
  • CDW is focused on remaining the partner of choice as the IT market continues to evolve.
  • CDW is laser focused on meeting the needs of customers.

Headwinds

  • Economic uncertainty continues to weigh heavily on solutions spend.
  • Increased technology complexity continues to weigh heavily on solutions spend.
  • Customers are cautious and measured in their approach to technology spending.
  • Limited demand in the market.
  • Solutions spend is being impacted by economic uncertainty.

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 2024

Historical avgQ2 2024

+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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