CDW Corporation CDW reported third-quarter 2024 non-GAAP earnings per share (EPS) of $2.63, missing the Zacks Consensus Estimate of $2.84. Also, the bottom line fell 3.2% year over year.

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The company’s revenues dipped 2% year over year to $5.517 billion. The downside reflects a challenging economic landscape that has led to slower customer decision-making on technology spending, dampened by soft sales in the Corporate and Public segments. However, growth in CDW’s UK and Canadian operations, along with strength in cloud and end-point solutions, has partially helped offset these declines. Quarterly revenues missed the consensus mark of $5.716 billion.

Separately, the company announced a quarterly dividend of 62.5 cents, which will be paid on Dec. 10, 2024, to shareholders on record as of Nov. 25.

In response to the results, CDW’s shares fell 8% in the pre-market trading on Oct. 30. In the past year, shares have risen 11.6% compared with the Zacks sub-industry's growth of 34.6%.

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Quarterly Details

Net sales of CDW’s Corporate segment amounted to $2.161 billion, declining 2.9% on a year-over-year basis.

The Small Business segment’s net sales of $380 million inched up 0.3% year over year.

The Public segment’s revenues totaled $2.336 billion, representing a 3.6% fall from the year-ago quarter. This was due to a 10.9% decrease in net sales to Government customers and a 3% decline in Education customers amid growth of 4.7% among Healthcare customers.

Net sales in Other (Canadian and U.K. operations) rose 6.4% to $640 million.

CDW Corporation Price and EPS Surprise

CDW Corporation price-eps-surprise | CDW Corporation Quote

CDW’s gross profit of $1.201 billion decreased 2.2% on a year-over-year basis. Despite this decline, the gross profit margin remained flat at 21.8%.

The non-GAAP operating income declined 4% year over year to $534 million. The non-GAAP operating margin was down to 9.7% from 9.9%.

Selling and administrative expenses fell 4% year over year to $719 million due to reduced performance-based and equity-based compensation costs.

Balance Sheet and Cash Flow

As of Sept. 30, 2024, CDW had $946.7 million of cash and cash equivalents compared with $440.7 million in the prior-year period.

The company has a long-term debt of $5.608 billion, lower than $5.662 billion in the previous year.

For the nine months that ended Sept. 30, 2024, CDW generated $932 million of cash flow from operating activities compared with $1.062 billion in the year-ago period.

CDW’s Zacks Rank

CDW currently carries a Zacks Rank #4 (Sell).

You can see the complete list of today’s Zacks #1(Strong Buy) Rank stocks here.

Performance of Other Companies

Iridium IRDM reported EPS of 21 cents for the third quarter of 2024, beating the Zacks Consensus Estimate by 5%. The company incurred a loss of 1 cent per share in the prior year quarter.

Shares of IRDM have lost 19.9% in the past year. 

Badger Meter, Inc BMI reported EPS of $1.08 for the third quarter of 2024, beating the Zacks Consensus Estimate by 5.9%. Also, the bottom line compared favorably with the year-ago quarter’s EPS of 88 cents.

Shares of BMI have gained 48.2% in the past year. 

Western Digital Corporation WDC reported first-quarter fiscal 2025 non-GAAP earnings of $1.78 per share, surpassing the Zacks Consensus Estimate by 2.3%. The company incurred a loss of $1.76 per share in the prior-year quarter.

Shares of WDC have gained 63.4% in the past year. 

 

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