NASDAQ$CDW

CDW Corp · Q4 2019 earnings

Q4 2019 earnings · · Investor relations

Briefing

CDW reported record fourth quarter net sales, reinforcing the power of its business model and strategy.

CDW Corporation announced excellent topline growth and profitability for Q4 2019, with net sales reaching $4,537 million, an 11.3% increase compared to Q4 2018. The company's performance was driven by its balance across customer end markets, the breadth of its product and solutions portfolio, and the ongoing execution of its strategy for growth. Excellent operating results were amplified by share repurchases, delivering an 18 percent increase in Non-GAAP net income per diluted share for 2019.

  • Total Net sales increased by 11.3% to $4,537 million compared to the fourth quarter of 2018.
  • Gross profit increased by 12.1% to $778 million compared to the fourth quarter of 2018.
  • Operating income increased by 16.8% to $284 million compared to the fourth quarter of 2018.
  • Non-GAAP net income per diluted share increased by 18.4% to $1.57 compared to the fourth quarter of 2018.

Headline financials

Total Revenue

$4.54B

Previous: $4.08B+11.3%
EPS (adj)

$1.57

Previous: $1.32+18.9%
Net Sales Growth (Constant Currency)

11.3%

No prior period
Non-GAAP Operating Income Margin

7.5%

No prior period
Capital Expenditures

$161M

Previous: $32.7M+393.3%
Free Cash Flow

$184M

Previous: $271M-32.2%
Net Income

$186M

Previous: $159M+16.8%
Operating Income

$284M

Previous: $243M+16.9%
Gross Profit

$778M

Previous: $694M+12.1%
Cash & Equivalents

$154M

Previous: $206M-25.2%
Total Assets

$8B

Previous: $7.17B+11.6%

Revenue & EPS history

CDW · Revenue · Quarterly

$4.54B

Q4 2019+11.3%vs Q4 2018
Beat estimate in 16 of 16 quarters(100%)
ActualEstimate

Revenue by segment

CDW · $4.54B total across 4 segments · Q4 2019

  • Corporate
    $1.97B+7.0%
  • Public
    $1.59B+12.7%
  • Other (UK and Canada)
    $587M+27.2%
  • Small Business
    $391M+7.9%

Forward guidance

For 2020, CDW expects to continue to outpace US IT market growth by 200 to 300 basis points on a constant currency basis.

Tailwinds

  • Continue to outpace US IT market growth by 200 to 300 basis points
  • Laser-focus on meeting the needs of more than 250,000 customers
  • Remain the partner of choice for more than 1,000 leading and emerging technology brands
  • Ongoing execution of our strategy for growth
  • Balance across customer end markets

Headwinds

  • Global and regional economic and political conditions
  • Decreases in spending on technology products and services
  • Substantial competition that could reduce CDW's market share
  • Potential breaches of data security
  • Fluctuations in foreign currency

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 Q4 2019

Historical avgQ4 2019

+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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