- CDW Corp CDW reported second-quarter FY21 net sales growth of 17.9% year-on-year to $5.15 billion, beating the analyst consensus of $4.96 billion.
- Average daily sales rose 17.9% Y/Y to $80.4 million.
- Net sales from the Total Corporate segment increased 27.3% Y/Y to $1.98 billion, and the Total Small Business segment rose 59.8% to $483 million.
- Total Public segment net sales improved 2.9% to $2.1 billion. An increase in net sales to Education customers by 26.8% and Healthcare customers by 7.0% drove the growth. Net sales to Government customers decreased 28.7%.
- Net sales for CDW's UK and Canadian operations, combined as "Other" for financial reporting purposes, grew 23.8% Y/Y to $600 million.
- Gross profit increased 18.2% to $883 million, and the gross margin expanded ten bps to 17.2%. An increase in the mix of net service contract revenue, primarily Software as a Service, and increased net sales and margins on professional services drove the expansion.
- The non-GAAP operating margin expanded 40 bps to 8.1%.
- Non-GAAP EPS of $2.02 beat the analyst consensus of $1.80.
- CDW generated $344.9 million in operating cash flow during the six months ended Jun. 30. The company held $501.2 million in cash and equivalents.
- CDW's board approved a quarterly cash dividend of $0.40 per share payable on Sep. 10 to stockholders of record on Aug. 25.
- "Demand from commercial customers increased sharply as economies rebounded and customers turned to CDW for expertise across the full technology solutions stack," said CEO Christine A. Leahy.
- Outlook: CDW expects to exceed its 2021 outlook to outpace US IT market growth by 200 bps- 300 bps on a constant currency basis.
- CDW raised 2021 constant currency non-GAAP EPS growth expectations from low double-digits to the mid-teens versus the analyst consensus of $7.38.
- Price action: CDW shares traded higher by 1.24% at $187.35 on the last check Wednesday.
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