CDW Q3 2023 Earnings Report
Key Takeaways
CDW Corporation reported a decrease in net sales by 9.4% to $5,628.3 million, but experienced an increase in net income by 5.9% to $315.5 million. The company's strong operating results and disciplined capital allocation led to record earnings per share.
Net sales decreased by 9.4% compared to Q3 2022, totaling $5,628.3 million.
Gross profit margin increased to 21.8% compared to 19.8% in Q3 2022, driven by higher product margin and a favorable contribution from software as a service.
Operating income increased by 2.6% to $478.4 million.
Net income per diluted share increased by 6.9% to $2.32.
CDW
CDW
CDW Revenue by Segment
Forward Guidance
CDW aims to surpass the US IT market growth by 200 to 300 basis points on a constant currency basis.
Positive Outlook
- Meeting the IT needs of over 250,000 global customers.
- Remaining the partner of choice for over 1,000 leading and emerging technology brands.
- Focusing on customer's mission-critical IT and operational needs.
- Addressing needs across the full IT solutions stack and lifecycle.
- Continuing laser focus on meeting customer needs.
Challenges Ahead
- Continued economic uncertainty leading to reduction or delays in technology spend.
- Decline in Net sales was driven by the Corporate and Small Business segments and our UK and Canadian operations.
- Customers are focusing their business priorities.
- Ongoing period of economic uncertainty.
- Customers continue to turn to CDW to address their mission-critical IT and operational needs across the full IT solutions stack and lifecycle.
Revenue & Expenses
Visualization of income flow from segment revenue to net income