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CDW Corporation CDW reported first-quarter 2025 non-GAAP earnings per share (EPS) of $2.15, beating the Zacks Consensus Estimate of $1.96. Also, the bottom line increased approximately 12% year over year.
The company’s revenues grew 6.7% year over year to $5.199 billion. The increase in net sales was primarily driven by strong customer demand for notebooks, mobile devices, desktops, software and services. This was partially offset by a decline in several hardware categories. Robust momentum across its Corporate, Small Business, Public and International (the U.K. & Canada) business segments backed the top-line growth. Quarterly revenues also surpassed the consensus mark of $4.89 billion.
CDW Corporation Price, Consensus and EPS Surprise
CDW Corporation price-consensus-eps-surprise-chart | CDW Corporation Quote
CDW began 2025 on a strong note, with the team effectively helping customers navigate a dynamic market and achieve critical goals. Management highlighted that the quarter’s performance reflects the strength of CDW’s balanced customer base and comprehensive product and solutions portfolio, supported by a customer-centric approach.
Separately, the company announced a quarterly dividend of 62.5 cents, which will be paid on June 10, 2025, to shareholders on record as of May 26.
In response to the results, CDW’s shares went up 2% in pre-market trading on May 7. In the past year, shares have declined 25.6% against the Zacks Computers-IT Services industry’s growth of 4.2%. (See the Zacks Earnings Calendar to stay ahead of market-making news.)
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Segmental Details
Net sales of CDW’s Corporate segment amounted to $2.236 billion, increasing 6.3% on a year-over-year basis.
The Small Business segment’s net sales of $405 million rose 7.9% year over year.
The Public segment’s revenues totaled $1.878 billion, representing 10.6% growth from the year-ago quarter. The uptick was driven by a 19.5% and 11.1% surge in net sales of Healthcare customers and Education customers, respectively.
Net sales in Other (Canadian and U.K. operations) rose 9.5% to $680 million.
Margin Details
CDW’s gross profit of $1.122 billion jumped 5.5% on a year-over-year basis. Gross profit margin decreased slightly from 21.8% to 21.6% due to a higher mix of lower margin products (like notebook and mobile sales), partially offset by increased contributions from netted-down revenue within software as a service.
Non-GAAP operating income increased 10% year over year to $444 million. The non-GAAP operating margin rose to 8.5% from 8.3%.