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Mar 31, 2024
CDW Q1 2024 Earnings Report
CDW's first quarter performance in 2024 was marked by a decrease in net sales and net income, though strong gross profit margin and cash flow were maintained.
Key Takeaways
CDW Corporation reported a decrease in net sales by 4.5% and a decrease in net income by 6.1% for the first quarter of 2024. The company's gross profit margin, however, increased to 21.8%. Continued economic uncertainty has led customers to be cautious and measured in their approach to technology spending, resulting in a reduction or delay in their spend.
Net sales decreased by 4.5% to $4,873 million compared to the first quarter of 2023.
Gross profit decreased by 2.4% to $1,063 million, with a gross profit margin of 21.8%.
Net income decreased by 6.1% to $216 million, with net income per diluted share at $1.59.
The company is focused on optimizing cash flow generation through effective management of working capital, providing strategic flexibility across capital priorities.
Revenue by Segment
Revenue by Geographic Location
Forward Guidance
CDW did not provide specific forward guidance in this earnings report. However, they mentioned that they remain well-positioned to attain their target of exceeding US IT market growth by 200 to 300 basis points on a constant currency basis.
Positive Outlook
- Strong gross margin reinforces the significant progress in executing long-term strategy.
- Customers continue to turn to CDW to address their mission-critical IT and operational needs across the full IT solutions stack and lifecycle.
- CDW remains well-positioned to attain its target of exceeding US IT market growth by 200 to 300 basis points on a constant currency basis.
- The company will continue to optimize its cash flow generation through effective management of its working capital.
- CDW aims to remain the partner of choice for more than 1,000 leading and emerging technology brands as the IT market continues to evolve.
Challenges Ahead
- First quarter IT market conditions were weaker than expected.
- Caution, concern, and complexity adversely impacted customers' capital investment decisions.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
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Avg. Return Before/After Earnings
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