CDW Q2 2022 Earnings Report
Key Takeaways
CDW Corporation reported strong second-quarter results, with net sales increasing by 19.4% to $6,146 million. The company's performance was bolstered by the acquisition of Sirius Computer Solutions and strong execution across its corporate, small business, and public segments. CDW's ability to meet evolving customer needs in a supply-constrained environment drove significant profit growth, with non-GAAP EPS increasing by 23.0%.
Net sales increased by 19.4% year-over-year to $6,146 million, driven by growth across all segments and the acquisition of Sirius Computer Solutions.
Gross profit increased by 32.3% to $1,168 million, with gross profit margin improving to 19.0% due to favorable product mix and higher netted down revenue.
Non-GAAP operating income increased by 23.5% to $516 million, with non-GAAP operating income margin improving to 8.4%.
Non-GAAP net income per diluted share increased by 23.0% to $2.49, reflecting strong operating results and disciplined capital allocation.
CDW
CDW
CDW Revenue by Segment
Forward Guidance
CDW expects to exceed its initial 2022 outlook, projecting to outpace US IT market growth by 200 to 300 basis points on a constant currency basis.
Positive Outlook
- Exceed initial 2022 outlook
- Outpace US IT market growth by 200 to 300 basis points
- Continue to execute strategy
- Invest in the business
- Laser-focused on meeting customer needs
Challenges Ahead
- COVID-19 pandemic, including resurgences and the emergence of new variants
- Inflationary pressures
- Level of interest rates
- Relationships with vendor partners and terms of their agreements
- Substantial competition that could reduce CDW's market share
Revenue & Expenses
Visualization of income flow from segment revenue to net income