NASDAQ$CDW

CDW Corp · Q3 2023 earnings

Q3 2023 earnings · · Investor relations

Briefing

CDW's Q3 2023 earnings reflected record margins, driven by a resilient business model and strategic execution.

CDW Corporation reported a decrease in net sales by 9.4% to $5,628.3 million, but experienced an increase in net income by 5.9% to $315.5 million. The company's strong operating results and disciplined capital allocation led to record earnings per share.

  • Net sales decreased by 9.4% compared to Q3 2022, totaling $5,628.3 million.
  • Gross profit margin increased to 21.8% compared to 19.8% in Q3 2022, driven by higher product margin and a favorable contribution from software as a service.
  • Operating income increased by 2.6% to $478.4 million.
  • Net income per diluted share increased by 6.9% to $2.32.

Headline financials

Total Revenue

$5.63B

Previous: $6.22B-9.4%
EPS (adj)

$2.72

Previous: $2.60+4.6%
Non-GAAP Operating Income Margin

9.9%

Previous: 8.8%+12.5%
Gross Profit Margin

21.8%

No prior period
Operating Income Margin

8.5%

No prior period
Average Daily Sales

$189M

Previous: $197M-4.0%
Capital Expenditures

-$115M

Previous: -$97.2M-18.0%
Free Cash Flow

$201M

Previous: $201M+0.1%
Net Income

$316M

Previous: $298M+5.9%
Operating Income

$478M

Previous: $466M+2.6%
Gross Profit

$1.23B

Previous: $1.23B-0.4%
Cash & Equivalents

$441M

Previous: $385M+14.6%
Total Assets

$12.9B

Previous: $13.5B-4.5%

Revenue & EPS history

CDW · Revenue · Quarterly

$5.63B

Q3 2023-9.4%vs Q3 2022
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 aims to surpass the US IT market growth by 200 to 300 basis points on a constant currency basis.

Tailwinds

  • Meeting the IT needs of over 250,000 global customers.
  • Remaining the partner of choice for over 1,000 leading and emerging technology brands.
  • Focusing on customer's mission-critical IT and operational needs.
  • Addressing needs across the full IT solutions stack and lifecycle.
  • Continuing laser focus on meeting customer needs.

Headwinds

  • Continued economic uncertainty leading to reduction or delays in technology spend.
  • Decline in Net sales was driven by the Corporate and Small Business segments and our UK and Canadian operations.
  • Customers are focusing their business priorities.
  • Ongoing period of economic uncertainty.
  • Customers continue to turn to CDW to address their mission-critical IT and operational needs across the full IT solutions stack and lifecycle.

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 2023

Historical avgQ3 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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