We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
CDW's Q4 Earnings In line With Estimates, Revenues Down Y/Y
Read MoreHide Full Article
CDW Corporation (CDW - Free Report) reported fourth-quarter 2023 non-GAAP earnings per share (EPS) of $2.57, which matched the Zacks Consensus Estimate. Also, the bottom line rose 2.8% year over year.
The company’s revenues decreased 7.7% year over year to $5.018 billion. Net sales decreased 8.1% at constant currency. The downtick was caused due to weakness across all business segments. Also, quarterly revenues failed to beat the consensus mark of $5.359 billion.
Separately, the company announced a quarterly dividend of 62 cents, which will be paid on Mar 12, 2024, to shareholders of record as of Feb 26, 2024. Also, the company’s board of directors has authorized a $750 million increase to the share repurchase program.
Net sales of CDW’s Corporate segment amounted to $2.286 billion, declining 8% on a year-over-year basis.
The Small Business segment’s net sales of $370 million declined 12.7% year over year.
The Public segment’s net sales amounted to $1.776 billion, down 4.1% from the year-ago quarter. Revenues from Education customers declined 11.7%.
Revenues from Healthcare decreased 4.7%, while revenues from Government increased 4.5%.
Net sales in Other (Canadian and U.K. operations) declined 13.6% to $587 million.
CDW’s gross profit of $1.554 billion decreased 2.3% on a year-over-year basis. The gross margin expanded 130 basis points (bps) to 23% due to the favorable contribution of netted-down revenues, primarily software as a service.
The non-GAAP operating income decreased 0.8% year over year to $518.7 million. Additionally, the non-GAAP operating margin advanced 70 bps to 10.3%.
Selling and administrative expenses decreased 2.1% year over year to $719 million, primarily due to reduced discretionary expenses.
Balance Sheet and Cash Flow
As of Dec 31, 2023, CDW had $588.7 million of cash and cash equivalents compared with $440.7 million as of Sep 30, 2023.
The company has a long-term debt of $5.03 billion, lower than $5.66 billion as of Sep 30, 2023.
For the year ended Dec 31, 2023, CDW generated $1,598.7 million of cash flow from operating activities compared with $1,335 million in the year-ago period.
The Zacks Consensus Estimate for Itron’s 2023 EPS has remained unchanged in the past 60 days to $2.88. ITRI’s long-term earnings growth rate is 23%.
Itron’s earnings surpassed the Zacks Consensus Estimate in each of the last four quarters, the average surprise being 289.3%. Shares of ITRI have gained 33.1% in the past year.
The Zacks Consensus Estimate for Woodward’s 2024 EPS has inched up 5.7% in the past 60 days to $5.20. WWD’s long-term earnings growth rate is 15.5%.
Woodward’s earnings beat the Zacks Consensus in each of the last four quarters, the average surprise being 27.2%. Shares of WWD have gained 31% in the past year.
The Zacks Consensus Estimate for Watts Water Technologies 2023 EPS has improved 0.1% in the past 60 days to $8.09. WTS’s long-term earnings growth rate is 7.8%.
WTS’ earnings surpassed the Zacks Consensus Estimate in each of the last four quarters, the average surprise being 11.8%. Shares of WTS have soared 23.2% in the past year.
Unique Zacks Analysis of Your Chosen Ticker
Pick one free report - opportunity may be withdrawn at any time
Image: Bigstock
CDW's Q4 Earnings In line With Estimates, Revenues Down Y/Y
CDW Corporation (CDW - Free Report) reported fourth-quarter 2023 non-GAAP earnings per share (EPS) of $2.57, which matched the Zacks Consensus Estimate. Also, the bottom line rose 2.8% year over year.
The company’s revenues decreased 7.7% year over year to $5.018 billion. Net sales decreased 8.1% at constant currency. The downtick was caused due to weakness across all business segments. Also, quarterly revenues failed to beat the consensus mark of $5.359 billion.
Separately, the company announced a quarterly dividend of 62 cents, which will be paid on Mar 12, 2024, to shareholders of record as of Feb 26, 2024. Also, the company’s board of directors has authorized a $750 million increase to the share repurchase program.
CDW Corporation Price, Consensus and EPS Surprise
CDW Corporation price-consensus-eps-surprise-chart | CDW Corporation Quote
Quarterly Details
Net sales of CDW’s Corporate segment amounted to $2.286 billion, declining 8% on a year-over-year basis.
The Small Business segment’s net sales of $370 million declined 12.7% year over year.
The Public segment’s net sales amounted to $1.776 billion, down 4.1% from the year-ago quarter. Revenues from Education customers declined 11.7%.
Revenues from Healthcare decreased 4.7%, while revenues from Government increased 4.5%.
Net sales in Other (Canadian and U.K. operations) declined 13.6% to $587 million.
CDW’s gross profit of $1.554 billion decreased 2.3% on a year-over-year basis. The gross margin expanded 130 basis points (bps) to 23% due to the favorable contribution of netted-down revenues, primarily software as a service.
The non-GAAP operating income decreased 0.8% year over year to $518.7 million. Additionally, the non-GAAP operating margin advanced 70 bps to 10.3%.
Selling and administrative expenses decreased 2.1% year over year to $719 million, primarily due to reduced discretionary expenses.
Balance Sheet and Cash Flow
As of Dec 31, 2023, CDW had $588.7 million of cash and cash equivalents compared with $440.7 million as of Sep 30, 2023.
The company has a long-term debt of $5.03 billion, lower than $5.66 billion as of Sep 30, 2023.
For the year ended Dec 31, 2023, CDW generated $1,598.7 million of cash flow from operating activities compared with $1,335 million in the year-ago period.
Zacks Rank & Stocks to Consider
CDW currently carries a Zacks Rank #4 (Sell).
Some better-ranked stocks worth considering in the broader technology space are Itron (ITRI - Free Report) , Woodward (WWD - Free Report) and Watts Water Technologies (WTS - Free Report) . Woodward and Itron sport a Zacks Rank #1 (Strong Buy), while Watts Water Technologies carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Itron’s 2023 EPS has remained unchanged in the past 60 days to $2.88. ITRI’s long-term earnings growth rate is 23%.
Itron’s earnings surpassed the Zacks Consensus Estimate in each of the last four quarters, the average surprise being 289.3%. Shares of ITRI have gained 33.1% in the past year.
The Zacks Consensus Estimate for Woodward’s 2024 EPS has inched up 5.7% in the past 60 days to $5.20. WWD’s long-term earnings growth rate is 15.5%.
Woodward’s earnings beat the Zacks Consensus in each of the last four quarters, the average surprise being 27.2%. Shares of WWD have gained 31% in the past year.
The Zacks Consensus Estimate for Watts Water Technologies 2023 EPS has improved 0.1% in the past 60 days to $8.09. WTS’s long-term earnings growth rate is 7.8%.
WTS’ earnings surpassed the Zacks Consensus Estimate in each of the last four quarters, the average surprise being 11.8%. Shares of WTS have soared 23.2% in the past year.