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Jun 30, 2024

CDW Q2 2024 Earnings Report

Second quarter results were reported with strong margins driven by strategic investments, while economic uncertainty impacted solutions spend.

Key Takeaways

CDW Corporation reported a decrease in net sales by 3.6% to $5,423.4 million. Despite the revenue decline, the company saw an increase in operating income by 5.1% to $433.1 million and net income by 7.0% to $281.1 million. EPS increased to $2.07 from $1.92 year over year.

Net sales decreased by 3.6% year-over-year, totaling $5,423.4 million.

Gross profit remained relatively consistent at $1,183.1 million, with gross profit margin increasing to 21.8%.

Operating income increased by 5.1% to $433.1 million.

Net income increased by 7.0% to $281.1 million, with net income per diluted share increasing to $2.07.

Total Revenue
$5.42B
Previous year: $5.63B
-3.6%
EPS
$2.5
Previous year: $2.56
-2.3%
Gross Profit
$1.18B
Previous year: $1.18B
+0.1%
Cash and Equivalents
$665M
Previous year: $204M
+226.3%
Free Cash Flow
$119M
Previous year: $189M
-36.9%
Total Assets
$13.6B
Previous year: $13B
+5.0%

CDW

CDW

CDW Revenue by Segment

Forward Guidance

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.

Positive Outlook

  • Customers continue to turn to CDW to address their mission-critical IT and operational needs across the full IT solutions stack and lifecycle.
  • CDW is focused on meeting the needs of more than 250,000 customers around the globe.
  • CDW aims to remain the partner of choice for more than 1,000 leading and emerging technology brands.
  • CDW is focused on remaining the partner of choice as the IT market continues to evolve.
  • CDW is laser focused on meeting the needs of customers.

Challenges Ahead

  • Economic uncertainty continues to weigh heavily on solutions spend.
  • Increased technology complexity continues to weigh heavily on solutions spend.
  • Customers are cautious and measured in their approach to technology spending.
  • Limited demand in the market.
  • Solutions spend is being impacted by economic uncertainty.

Revenue & Expenses

Visualization of income flow from segment revenue to net income