Zinger Key Points
- CDW’s Q4 sales rose 3.3%, led by growth in Corporate, Small Business, and Public segments.
- Adjusted EPS of $2.48 exceeded expectations; $750M share buyback approved.
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CDW Corporation CDW shares are trading higher after the company reported better-than-expected fourth-quarter results.
Net sales rose 3.3% year-over-year to $5.186 billion, beating the consensus of $4.954 billion. Net sales from the Corporate segment increased 4.2% Y/Y to $2.35 billion, and the Small Business segment increased 4.4% Y/Y to $380 million.
Public segment net sales rose 6.1% Y/Y to $1.854 billion, led by higher net sales to Healthcare customers of 29.5% in the quarter. Net sales for CDW’s U.K. and Canadian operations rose 5.1% Y/Y to $607 million.
Average daily sales surged 5.0% Y/Y to $83.6 million. Gross margin contracted to 22.3% from 23.0% in the quarter.
The adjusted operating margin was 9.6% vs. 10.3% a year ago. Adjusted EPS of $2.48 beat the consensus of $2.32.
CDW held $717.7 million in cash and equivalents as of December 2024.
Buyback: CDW Board of Directors approved a $750 million increase to its share repurchase authorization.
The company declared a quarterly cash dividend of $0.625 per share (+1% vs. prior year period) payable on March 11, 2025, to all stockholders of record as of February 25, 2025.
Christine A. Leahy, chair and chief executive officer, said, “In this dynamic environment, our value proposition is stronger than ever as customers turn to CDW to help them address mission-critical IT and operational needs across the full IT solutions stack and lifecycle and guide them through their AI journey.”
”For 2025, we continue to target exceeding US IT market growth by 200 to 300 basis points. To achieve this, we will maintain our laser focus on meeting the evolving needs of our more than 250,000 customers around the globe and remaining the partner of choice for more than 1,000 leading and emerging technology brands.”
Investors can gain exposure to the stock via ProShares S&P Technology Dividend Aristocrats ETF TDV and First Trust NASDAQ-100-Technology Sector Index Fund QTEC.
Price Action: CDW shares are up 4.32% at $207.95 at the last check Wednesday.
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