NASDAQ$CDW

CDW Corp · Q3 2021 earnings

Q3 2021 earnings · · Investor relations

Briefing

CDW's Q3 2021 performance was driven by record net sales and strong profitability, highlighting the strength of the business model and diverse customer end markets.

CDW Corporation reported strong third-quarter results with net sales increasing by 11.4% to $5,300 million and net income increasing by 38.0% to $267 million. The company's performance was driven by growth in the Corporate and Small Business segments, while the Public segment experienced a slight decrease. CDW is now expected to outpace US IT market growth by 200 to 300 basis points on a constant currency basis.

  • Total Net sales in the third quarter of 2021 were $5,300 million, an increase of 11.4 percent compared to the third quarter of 2020.
  • Third quarter Net sales performance included growth in the Corporate and Small Business segments, while the Public segment experienced a decrease.
  • Gross profit in the third quarter of 2021 was $915 million, an increase of 10.8 percent compared to the third quarter of 2020.
  • Net income per diluted share for the third quarter of 2021 was $1.91, an increase of 43.2 percent compared to $1.33 for the third quarter of 2020.

Headline financials

Total Revenue

$5.3B

Previous: $4.76B+11.4%
EPS (adj)

$2.13

Previous: $1.83+16.4%
Average Daily Sales

$183M

No prior period
Capital Expenditures

-$66.2M

Previous: -$134M+50.4%
Free Cash Flow

$200M

Previous: $59.6M+236.2%
Net Income

$267M

Previous: $193M+38.0%
Operating Income

$386M

Previous: $318M+21.6%
Gross Profit

$915M

Previous: $826M+10.8%
Cash & Equivalents

$245M

Previous: $1.25B-80.4%
Total Assets

$9.01B

Previous: $9.22B-2.3%

Revenue & EPS history

CDW · Revenue · Quarterly

$5.3B

Q3 2021+11.4%vs Q3 2020
Beat estimate in 14 of 16 quarters(88%)
ActualEstimate

Revenue by segment

CDW · $5.3B total across 4 segments · Q3 2021

  • Public
    $2.15B-6.1%
  • Corporate
    $2.07B+24.5%
  • Other (UK and Canada)
    $612M+31.4%
  • Small Business
    $467M+38.6%

Forward guidance

CDW expects to exceed its 2021 outlook to outpace US IT market growth by 200 to 300 basis points on a constant currency basis.

Tailwinds

  • Continue to execute our strategy
  • Invest in the business
  • Meeting the needs of our more than 250,000 customers in the United States
  • Meeting the needs of our more than 250,000 customers in the United Kingdom and Canada
  • Remaining the partner of choice for more than 1,000 leading and emerging technology brands as the technology 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 Q3 2021

Historical avgQ3 2021

+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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