Financial Performance - CDW Corporation reported third-quarter 2024 non-GAAP earnings per share (EPS) of $2.63, missing the Zacks Consensus Estimate of $2.84, and reflecting a 3.2% year-over-year decline [1] - Revenues decreased by 2% year over year to $5.517 billion, falling short of the consensus mark of $5.716 billion, attributed to a challenging economic environment and slower customer decision-making on technology spending [2] - The Corporate segment's net sales were $2.161 billion, down 2.9% year over year, while the Public segment's revenues totaled $2.336 billion, a 3.6% decline from the previous year [3][4] Segment Performance - The Small Business segment's net sales increased slightly by 0.3% year over year to $380 million [4] - Net sales in Other (Canadian and U.K. operations) rose by 6.4% to $640 million, partially offsetting declines in other segments [4] Profitability Metrics - CDW's gross profit decreased by 2.2% year over year to $1.201 billion, with a stable gross profit margin of 21.8% [5] - Non-GAAP operating income fell by 4% year over year to $534 million, with the non-GAAP operating margin decreasing to 9.7% from 9.9% [5] Expenses and Cash Flow - Selling and administrative expenses decreased by 4% year over year to $719 million, attributed to lower performance-based and equity-based compensation costs [5] - As of September 30, 2024, CDW had $946.7 million in cash and cash equivalents, up from $440.7 million in the prior year [6] Debt and Cash Flow - The company reported long-term debt of $5.608 billion, a decrease from $5.662 billion in the previous year [6] - For the nine months ending September 30, 2024, CDW generated $932 million in cash flow from operating activities, down from $1.062 billion in the year-ago period [6]

Core Insights - CDW reported $5.52 billion in revenue for Q3 2024, a year-over-year decline of 2% and a surprise of -3.49% compared to the Zacks Consensus Estimate of $5.72 billion [1] - The EPS for the quarter was $2.63, down from $2.72 a year ago, with an EPS surprise of -7.39% against the consensus estimate of $2.84 [1] Revenue Breakdown - Corporate net sales were $2.16 billion, a -2.9% change year-over-year, below the average estimate of $2.26 billion [3] - Small Business net sales reached $379.70 million, a +0.3% year-over-year change, but below the average estimate of $390.58 million [3] - Public Government net sales were $691 million, a -10.9% change year-over-year, compared to the average estimate of $741.24 million [3] - Other net sales amounted to $640 million, a +6.4% year-over-year change, exceeding the average estimate of $619.39 million [3] - Public Healthcare net sales were $649 million, a +4.7% year-over-year change, above the average estimate of $603.26 million [3] - Public net sales totaled $2.34 billion, a -3.6% change year-over-year, below the average estimate of $2.44 billion [3] - Public Education net sales were $995.70 million, a -3% change year-over-year, compared to the average estimate of $1.09 billion [3] Stock Performance - CDW shares returned +1% over the past month, while the Zacks S&P 500 composite returned +1.8% [4] - The stock currently holds a Zacks Rank 4 (Sell), indicating potential underperformance relative to the broader market in the near term [4]

Core Viewpoint - CDW reported quarterly earnings of $2.63 per share, missing the Zacks Consensus Estimate of $2.84 per share, representing an earnings surprise of -7.39% [1][2] Financial Performance - CDW's revenues for the quarter ended September 2024 were $5.52 billion, missing the Zacks Consensus Estimate by 3.49%, and down from $5.63 billion a year ago [2] - Over the last four quarters, CDW has not surpassed consensus EPS estimates and has topped revenue estimates only once [2] Stock Performance - CDW shares have declined approximately 3.3% since the beginning of the year, while the S&P 500 has gained 22.3% [3] Future Outlook - The company's earnings outlook is crucial for investors, with current consensus EPS estimates at $2.71 for the coming quarter and $9.96 for the current fiscal year [7] - The estimate revisions trend for CDW is currently unfavorable, resulting in a Zacks Rank 4 (Sell), indicating expected underperformance in the near future [6] Industry Context - The Computers - IT Services industry, to which CDW belongs, is currently in the top 22% of Zacks industries, suggesting that the industry outlook can significantly impact stock performance [8]

EXHIBIT 99.1 2 | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | |------------------------------------------------------------------------------|-------|-----------------------|-------|--------------------------|----------------|----------------------|-------|--------------------------|--------------| | (Dollars in millions, except \nper share amounts and percentage) | | Three Months \n2024 | | Ended September \n2023 | 30, \n% Chg. | Nine Months \n2024 | | Ended September \n2023 | 30, \n% Chg. | ...

Wall Street analysts expect CDW (CDW) to post quarterly earnings of $2.85 per share in its upcoming report, which indicates a year-over-year increase of 4.8%. Revenues are expected to be $5.73 billion, up 1.8% from the year-ago quarter. The current level reflects no revision in the consensus EPS estimate for the quarter over the past 30 days. This demonstrates how the analysts covering the stock have collectively reappraised their initial projections over this period. Prior to a company's earnings release, ...

Core Viewpoint - CDW Corporation is expected to report third-quarter 2024 results on October 30, with revenue estimates of $5.73 billion, reflecting a 1.8% year-over-year increase, and earnings per share estimated at $2.85, indicating a 4.8% improvement from the previous year [1] Group 1: Revenue and Earnings Estimates - The Zacks Consensus Estimate for CDW's revenues is $5.73 billion, which represents a 1.8% increase from the same quarter last year [1] - The consensus estimate for earnings is $2.85 per share, unchanged over the past 60 days, indicating a 4.8% year-over-year improvement [1] - CDW's earnings have missed the Zacks Consensus Estimate in the last two quarters, matched in one, and surpassed in another, with an average negative surprise of 1.62% [1] Group 2: Factors Influencing Performance - Continued demand for cloud and security solutions is likely to drive top-line performance, with customer spending preferences focusing on cost optimization, data protection, and workforce productivity [2] - Revenues from Data Storage and Servers are expected to increase by 7.3% to $617.8 million in the upcoming quarter due to higher client spending on efficiency improvements [2] - The increasing adoption of AI-driven assistance and applications is anticipated to act as a tailwind for CDW [2] Group 3: Market Challenges - Challenging market conditions, including geopolitical risks and fluctuations in the UK market, present significant headwinds for CDW [3] - A volatile macroeconomic backdrop and complex technological shifts have led to muted customer spending behavior, with delays in decision-making due to the dynamic IT landscape and rising AI trends [3] - Revenues from the Government sales channel are expected to decline by 5.2% year-over-year to $735.2 million due to the impact of congressional budget constraints [3] Group 4: Customer Base and Sector Performance - CDW's diverse customer base across business, government, education, and healthcare sectors in the U.S., U.K., and Canada is likely to provide some cushion amid macroeconomic volatility [3] - For the third quarter, revenues from Corporate and Small Business are expected to increase by 2.4% and 3.9%, respectively, while revenues from the Education sector are estimated to rise by 6.9%, and Healthcare is expected to decline by 4.4% year-over-year [3] Group 5: Earnings Prediction Model - The current model does not predict an earnings beat for CDW, as it has an Earnings ESP of 0.00% and a Zacks Rank of 3 (Hold) [4]

For dividend-paying companies, maintaining dividend growth is an essential way to demonstrate to investors that a firm is stable and enjoys long-term profitability. Dividend growth is also attractive to investors because it means an increasing passive income stream through stock ownership. Some investors also subscribe to the belief that dividend growth is an important factor in determining a company's stock price, as in the case of the dividend discount model. Investors seeking to capitalize on dividend gr ...

A month has gone by since the last earnings report for CDW (CDW) . Shares have added about 4.5% in that time frame, outperforming the S&P 500. Will the recent positive trend continue leading up to its next earnings release, or is CDW due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important catalysts. CDW's Q2 Earnings Miss Estimates CDW Corporation reported second-qu ...

CDW (CDW) reported $5.42 billion in revenue for the quarter ended June 2024, representing a year-over-year decline of 3.6%. EPS of $2.50 for the same period compares to $2.56 a year ago. The reported revenue compares to the Zacks Consensus Estimate of $5.4 billion, representing a surprise of +0.45%. The company delivered an EPS surprise of -0.40%, with the consensus EPS estimate being $2.51. While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they comp ...

Table of Contents Title of each class Trading Symbol(s) Name of each exchange on which registered Common stock, par value $0.01 per share CDW Nasdaq Global Select Market UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2024 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition p ...