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 Q2 Earnings Miss Estimates, Revenues Decrease Y/Y
Read MoreHide Full Article
CDW Corporation (CDW - Free Report) reported second-quarter 2024 non-GAAP earnings per share (EPS) of $2.50, which missed the Zacks Consensus Estimate of $2.51. Also, the bottom line fell 2.6% year over year.
Quarterly revenues declined 3.6% year over year to $5.423 billion. The decrease is attributed to ongoing economic volatility and the complex technology landscape affecting customer spending, worsened by soft results across the Corporate, Small Business and Public segments. However, the top line beat the consensus mark of $5.4 billion.
Separately, the company announced a quarterly dividend of 62 cents, which will be paid on Sep 10, 2024, to shareholders on record as of Aug 26.
Net sales of CDW’s Corporate segment amounted to $2.195 billion, declining 2.2% on a year-over-year basis.
The Small Business segment’s net sales of $383 million fell 3.4% year over year.
The Public segment’s revenues totaled $2.243 billion, representing a 2.3% drop from the year-ago quarter. This was due to a 6.2% decrease in net sales to Government customers, a 0.9% decline in Education customers and a 0.1% fall in Healthcare customers.
Net sales in Other (Canadian and U.K. operations) plunged 12.7% to $602 million.
Despite the downfall in revenues, gross profit was $1.183 billion compared with $1.182 billion reported in the year-ago quarter. The gross margin expanded 80 basis points (bps) to 21.8%, driven by the robust contribution of netted-down revenues, mainly software as a service.
The non-GAAP operating income decreased 3.7% year over year to $510 million. Additionally, the non-GAAP operating margin remained stable at 9.4%.
Selling and administrative expenses fell 2.5% year over year to $769 million. This reduction was due to the absence of workplace optimization costs seen in the second quarter of 2023, partially offset by increased transformation costs.
Balance Sheet and Cash Flow
As of Jun 30, 2024, CDW had $665.3 million of cash and cash equivalents compared with $203.9 million as of Jun 30, 2023.
The company has a long-term debt of $4.42 billion, lower than $5.72 billion as of Jun 30, 2023.
For the six months that ended Jun 30, 2024, CDW generated $590 million of cash flow from operating activities compared with $593.6 million a year ago.
Zacks Rank
CDW currently carries a Zacks Rank #4 (Sell).
Performance of Other Companies
BlackBerry’s (BB - Free Report) reported first-quarter fiscal 2025 adjusted loss per share of 3 cents is narrower than the company’s estimate of a loss of 4-6 cents. In the year-ago quarter, it reported non-GAAP earnings of 6 cents per share. The Zacks Consensus Estimate was pegged at a loss of 4 cents per share. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Shares of BB have lost 52.9% in the past year.
Badger Meter, Inc (BMI - Free Report) reported earnings per share (EPS) of $1.12 for second-quarter 2024, beating the Zacks Consensus Estimate by 14.3%. Also, the bottom line compared favorably with the year-ago quarter’s EPS of 76 cents.
Shares of BMI have gained 22.7% in the past year.
SAP SE (SAP - Free Report) reported second-quarter 2024 non-IFRS earnings of €1.10 ($1.18) per share, climbing 59% from the year-ago quarter’s levels. The Zacks Consensus Estimate was pegged at $1.01.
In the past year, shares of SAP have gained 51.6%.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
CDW's Q2 Earnings Miss Estimates, Revenues Decrease Y/Y
CDW Corporation (CDW - Free Report) reported second-quarter 2024 non-GAAP earnings per share (EPS) of $2.50, which missed the Zacks Consensus Estimate of $2.51. Also, the bottom line fell 2.6% year over year.
Quarterly revenues declined 3.6% year over year to $5.423 billion. The decrease is attributed to ongoing economic volatility and the complex technology landscape affecting customer spending, worsened by soft results across the Corporate, Small Business and Public segments. However, the top line beat the consensus mark of $5.4 billion.
Separately, the company announced a quarterly dividend of 62 cents, which will be paid on Sep 10, 2024, to shareholders on record as of Aug 26.
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 $2.195 billion, declining 2.2% on a year-over-year basis.
The Small Business segment’s net sales of $383 million fell 3.4% year over year.
The Public segment’s revenues totaled $2.243 billion, representing a 2.3% drop from the year-ago quarter. This was due to a 6.2% decrease in net sales to Government customers, a 0.9% decline in Education customers and a 0.1% fall in Healthcare customers.
Net sales in Other (Canadian and U.K. operations) plunged 12.7% to $602 million.
Despite the downfall in revenues, gross profit was $1.183 billion compared with $1.182 billion reported in the year-ago quarter. The gross margin expanded 80 basis points (bps) to 21.8%, driven by the robust contribution of netted-down revenues, mainly software as a service.
The non-GAAP operating income decreased 3.7% year over year to $510 million. Additionally, the non-GAAP operating margin remained stable at 9.4%.
Selling and administrative expenses fell 2.5% year over year to $769 million. This reduction was due to the absence of workplace optimization costs seen in the second quarter of 2023, partially offset by increased transformation costs.
Balance Sheet and Cash Flow
As of Jun 30, 2024, CDW had $665.3 million of cash and cash equivalents compared with $203.9 million as of Jun 30, 2023.
The company has a long-term debt of $4.42 billion, lower than $5.72 billion as of Jun 30, 2023.
For the six months that ended Jun 30, 2024, CDW generated $590 million of cash flow from operating activities compared with $593.6 million a year ago.
Zacks Rank
CDW currently carries a Zacks Rank #4 (Sell).
Performance of Other Companies
BlackBerry’s (BB - Free Report) reported first-quarter fiscal 2025 adjusted loss per share of 3 cents is narrower than the company’s estimate of a loss of 4-6 cents. In the year-ago quarter, it reported non-GAAP earnings of 6 cents per share. The Zacks Consensus Estimate was pegged at a loss of 4 cents per share. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Shares of BB have lost 52.9% in the past year.
Badger Meter, Inc (BMI - Free Report) reported earnings per share (EPS) of $1.12 for second-quarter 2024, beating the Zacks Consensus Estimate by 14.3%. Also, the bottom line compared favorably with the year-ago quarter’s EPS of 76 cents.
Shares of BMI have gained 22.7% in the past year.
SAP SE (SAP - Free Report) reported second-quarter 2024 non-IFRS earnings of €1.10 ($1.18) per share, climbing 59% from the year-ago quarter’s levels. The Zacks Consensus Estimate was pegged at $1.01.
In the past year, shares of SAP have gained 51.6%.