NASDAQ$CDW

CDW Corp · Q4 2022 earnings

Q4 2022 earnings · · Investor relations

Briefing

CDW's Q4 2022 earnings were reported, revealing a mix of results with a decrease in net sales but an increase in gross profit and operating income.

CDW Corporation reported a decrease in net sales for the fourth quarter of 2022, but experienced growth in gross profit, operating income, and net income. The company's full-year performance showed strong growth in net sales and profits, driven by the strength of its business model and strategy.

  • Total Net sales decreased by 1.8% compared to Q4 2021.
  • Gross profit increased by 21.1% compared to Q4 2021.
  • Operating income increased by 31.6% compared to Q4 2021.
  • Net income per diluted share increased by 33.1% compared to Q4 2021.

Headline financials

Total Revenue

$5.44B

Previous: $5.54B-1.8%
EPS (adj)

$2.50

Previous: $2.08+20.2%
Capital Expenditures

$30.6M

Previous: $33.8M-9.5%
Free Cash Flow

$211M

Previous: $114M+85.2%
Net Income

$287M

Previous: $215M+33.4%
Operating Income

$447M

Previous: $339M+31.6%
Gross Profit

$1.18B

Previous: $976M+21.1%
Cash & Equivalents

$315M

Previous: $258M+22.1%
Total Assets

$13.1B

Previous: $13.2B-0.5%

Revenue & EPS history

CDW · Revenue · Quarterly

$5.44B

Q4 2022-1.8%vs Q4 2021
Beat estimate in 8 of 15 quarters(53%)
ActualEstimate

Revenue by segment

CDW · $5.44B total across 4 segments · Q4 2022

  • Corporate
    $2.48B+6.9%
  • Public
    $1.85B-8.7%
  • Other (UK and Canada)
    $680M-2.7%
  • Small Business
    $424M-13.1%

Forward guidance

In 2023, CDW is well-positioned to continue outpacing the US IT market growth by 200 to 300 basis points on a constant currency basis, focusing on customer needs and remaining the partner of choice for technology brands.

Tailwinds

  • Maintain laser focus on meeting the needs of more than 250,000 customers.
  • Remaining the partner of choice for more than 1,000 leading and emerging technology brands.
  • Continued focus on dividend increases.
  • Managing net leverage.
  • Re-establish capital allocation priorities of M&A and share repurchases.

Headwinds

  • Inflationary pressures.
  • Level of interest rates.
  • The COVID-19 pandemic, including resurgences and the emergence of new variants.
  • Potential breaches of data security and failure to protect our information technology systems from cybersecurity threats.
  • Global and regional economic and political conditions, including impacts of the ongoing military conflict between Russia and Ukraine and related sanctions against Russia.

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 2022

Historical avgQ4 2022

+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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