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CDW Corporation (CDW - Free Report) reported first-quarter 2022 non-GAAP earnings of $2.20 per share, beating the Zacks Consensus Estimate by 10% and increasing 26.6% year over year.
The company’s revenues increased 23% year over year to $5.95 billion. Quarterly revenues also surpassed the consensus mark by 5.2%. On a constant currency basis, net sales improved by 23.3%.
In the past year, shares have declined 2.3% compared with industry’s decline of 26.3%.
Quarterly Details
Net sales of CDW’s Corporate segment amounted to $2.628 billion, rising 45.5% on a year-over-year basis.
The Small Business segment’s net sales of $524 million rose 21.1% year over year.
Coming to the Public segment, net sales amounted to $2.033 billion. The figure rose 5.8% from the year-earlier quarter’s levels. Revenues from Healthcare and Government customers were up 26.8% and 5.4%, respectively. Revenues from Education customers dropped 4.3%.
Net sales in Other (Canadian and U.K. operations) increased 12.8% to $765 million.
CDW’s gross profit of $1.104 million rallied 38.8% on a year-over-year basis. However, the gross margin expanded 220 basis points (bps) to 18.6%, mainly on a favorable product mix and rate.
The non-GAAP operating income increased 25.7% year over year to $462 million. Additionally, the non-GAAP operating margin advanced 20 bps to 7.8%.
Selling and administrative expenses rose 52% year over year to $717.2 million, primarily due to higher sales payroll expenses, increased coworker count and higher acquisition and integration costs.
Balance Sheet and Cash Flow
As of Mar 31, 2022, CDW had $386.9 million of cash and cash equivalents compared with $258.1 million as of Dec 31, 2021.
The company has a long-term debt of $6.51 billion, lower than $6.76 billion as of Dec 31, 2021.
CDW generated $380.8 million of cash flow from operating activities compared with $344.6 billion in the prior-year quarter.
Separately, the company announced that its board of directors authorized a quarterly cash dividend of 50 cents per share to be payable on Jun 10 to shareholders of record as of May 25.
The Zacks Consensus Estimate for Flex’s fiscal 2022 earnings is pegged at $1.88 per share, unchanged in the past 60 days. The long-term earnings growth rate is pegged at 14.9%.
Flex earnings beat the Zacks Consensus Estimate all last four quarters, with the average being 25.6%. Shares of FLEX have declined 2.3% in the past year.
The Zacks Consensus Estimate for Jabil fiscal 2022 earnings is pegged at $7.25 per share, up 10.2% in the past 60 days. The long-term earnings growth rate is 12%.
Jabil earnings beat the Zacks Consensus Estimate all last four quarters, with the average being 13.5%. Shares of JBL have gained 12.5% in the past year.
The Zacks Consensus Estimate for Broadcom’s fiscal 2022 earnings is pegged at $35.67 per share, up 1.1% in the past 60 days. AVGO’s long-term earnings growth rate is pegged at 15.6%.
Broadcom’s earnings beat the Zacks Consensus Estimate in all the preceding four quarters, with the average being 1.9%. Shares of AVGO have increased 31% in the past year.
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CDW's Q1 Earnings & Revenues Beat Estimates, Increase Y/Y
CDW Corporation (CDW - Free Report) reported first-quarter 2022 non-GAAP earnings of $2.20 per share, beating the Zacks Consensus Estimate by 10% and increasing 26.6% year over year.
The company’s revenues increased 23% year over year to $5.95 billion. Quarterly revenues also surpassed the consensus mark by 5.2%. On a constant currency basis, net sales improved by 23.3%.
In the past year, shares have declined 2.3% compared with industry’s decline of 26.3%.
Quarterly Details
Net sales of CDW’s Corporate segment amounted to $2.628 billion, rising 45.5% on a year-over-year basis.
CDW Corporation Price
CDW Corporation price | CDW Corporation Quote
The Small Business segment’s net sales of $524 million rose 21.1% year over year.
Coming to the Public segment, net sales amounted to $2.033 billion. The figure rose 5.8% from the year-earlier quarter’s levels. Revenues from Healthcare and Government customers were up 26.8% and 5.4%, respectively. Revenues from Education customers dropped 4.3%.
Net sales in Other (Canadian and U.K. operations) increased 12.8% to $765 million.
CDW’s gross profit of $1.104 million rallied 38.8% on a year-over-year basis. However, the gross margin expanded 220 basis points (bps) to 18.6%, mainly on a favorable product mix and rate.
The non-GAAP operating income increased 25.7% year over year to $462 million. Additionally, the non-GAAP operating margin advanced 20 bps to 7.8%.
Selling and administrative expenses rose 52% year over year to $717.2 million, primarily due to higher sales payroll expenses, increased coworker count and higher acquisition and integration costs.
Balance Sheet and Cash Flow
As of Mar 31, 2022, CDW had $386.9 million of cash and cash equivalents compared with $258.1 million as of Dec 31, 2021.
The company has a long-term debt of $6.51 billion, lower than $6.76 billion as of Dec 31, 2021.
CDW generated $380.8 million of cash flow from operating activities compared with $344.6 billion in the prior-year quarter.
Separately, the company announced that its board of directors authorized a quarterly cash dividend of 50 cents per share to be payable on Jun 10 to shareholders of record as of May 25.
Zacks Rank & Other Stocks to Consider
CDW currently carries a Zacks Rank #2 (Buy).
Some better-ranked stocks from the broader technology sector are Flex (FLEX - Free Report) , Jabil (JBL - Free Report) and Broadcom (AVGO - Free Report) . Flex and Jabil sport a Zacks Rank #1 (Strong Buy), while Broadcom carries a Zacks Rank of 2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Flex’s fiscal 2022 earnings is pegged at $1.88 per share, unchanged in the past 60 days. The long-term earnings growth rate is pegged at 14.9%.
Flex earnings beat the Zacks Consensus Estimate all last four quarters, with the average being 25.6%. Shares of FLEX have declined 2.3% in the past year.
The Zacks Consensus Estimate for Jabil fiscal 2022 earnings is pegged at $7.25 per share, up 10.2% in the past 60 days. The long-term earnings growth rate is 12%.
Jabil earnings beat the Zacks Consensus Estimate all last four quarters, with the average being 13.5%. Shares of JBL have gained 12.5% in the past year.
The Zacks Consensus Estimate for Broadcom’s fiscal 2022 earnings is pegged at $35.67 per share, up 1.1% in the past 60 days. AVGO’s long-term earnings growth rate is pegged at 15.6%.
Broadcom’s earnings beat the Zacks Consensus Estimate in all the preceding four quarters, with the average being 1.9%. Shares of AVGO have increased 31% in the past year.