NASDAQ$CDW

CDW Corp · Q4 2020 earnings

Q4 2020 earnings · · Investor relations

Briefing

CDW's Q4 2020 performance demonstrated the power of its business model amidst global challenges.

CDW Corporation reported a strong fourth quarter with a 9.2% increase in net sales, reaching $4,956.2 million. Net income increased by 28.4% to $238.3 million, and non-GAAP net income per diluted share rose by 16.1% to $1.82. The company's performance was driven by growth in the Public segment, particularly in Education and Government sectors.

  • Total Net sales increased by 9.2% compared to Q4 2019, reaching $4,956 million.
  • Net income rose by 28.4% to $238 million, or $1.65 per diluted share.
  • Non-GAAP net income increased by 15.0% to $264 million, or $1.82 per diluted share.
  • Public segment Net sales increased by 46.5%, driven by Education and Government sectors.

Headline financials

Total Revenue

$4.96B

Previous: $4.54B+9.2%
EPS (adj)

$1.82

Previous: $1.57+15.9%
Non-GAAP Operating Income Margin

7.6%

Previous: 7.5%+1.3%
Average Daily Sales

$180M

No prior period
Capital Expenditures

$24.4M

Previous: $161M-84.9%
Free Cash Flow

$552M

Previous: $184M+200.4%
Net Income

$238M

Previous: $186M+28.1%
Operating Income

$332M

Previous: $284M+17.0%
Gross Profit

$881M

Previous: $778M+13.2%
Cash & Equivalents

$1.41B

Previous: $154M+815.7%
Total Assets

$9.34B

Previous: $8B+16.8%

Revenue & EPS history

CDW · Revenue · Quarterly

$4.96B

Q4 2020+9.2%vs Q4 2019
Beat estimate in 15 of 16 quarters(94%)
ActualEstimate

Revenue by segment

CDW · $4.96B total across 4 segments · Q4 2020

  • Public
    $2.3B+44.2%
  • Corporate
    $1.72B-12.6%
  • Other (UK and Canada)
    $576M-2.0%
  • Small Business
    $367M-6.3%

Forward guidance

For 2021, CDW expects to continue 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
  • Laser-focused on meeting the needs of our more than 250,000 customers in the United States, the United Kingdom and Canada
  • Remaining the partner of choice for more than 1,000 leading and emerging technology brands
  • Technology market continues to evolve

Headwinds

  • Macroeconomic uncertainty continues in the near term
  • Focus on what we can control
  • COVID-19 pandemic
  • Associated impact on our business
  • Global and regional economic and political conditions

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 2020

Historical avgQ4 2020

+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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