Financial Data and Key Metrics Changes - For Q1 2025, net sales were $5.2 billion, an 8% increase compared to the same period in 2024 on an average daily sales basis [7] - Gross profit reached $1.1 billion, up 7% year over year on an average daily sales basis [7] - Non-GAAP operating income was $444 million, reflecting a 10% increase, while non-GAAP net income per share was $2.15, up 12% [8][31] Business Line Data and Key Metrics Changes - Commercial market growth was strong, with corporate and small business sales increasing by 68% [11] - Healthcare saw a 20% increase in net sales, driven by client devices, cloud, and services [12] - Education increased by 11%, with K-12 growth driven by Chromebook demand [12] - Government net sales increased slightly, with state and local growth offsetting federal agency decision-making pauses [13] Market Data and Key Metrics Changes - The federal government market growth was subdued, while education growth accelerated towards the end of the quarter [9] - UK and Canadian operations delivered sales of $2.5 billion last year, with the UK leading the growth [11] - The commercial market showed consistent growth, while the federal and education markets faced challenges [28] Company Strategy and Development Direction - The company is focused on a three-part growth strategy, emphasizing cloud adoption, cybersecurity, and IT workflow optimization [15] - Recent investments include embedding services throughout the portfolio, particularly in Mission Cloud Services [15] - The company aims to maintain its position as a trusted adviser and vendor partner in a dynamic environment [23] Management's Comments on Operating Environment and Future Outlook - The company maintains its 2025 outlook, expecting low single-digit growth in the US IT market with a growth premium of 200 to 300 basis points [19] - Management noted that while customers are cautious, they do not intend to alter their spending plans significantly [20] - The environment remains fluid, and the company is prepared to navigate uncertainties as they arise [21] Other Important Information - Non-GAAP SG&A expenses totaled $678 million, up 2.8% year over year, reflecting higher gross profit achievement [30] - The company returned approximately $200 million in share repurchases and $83 million in dividends as part of its capital allocation strategy [34] - The cash conversion cycle was 15 days, down from the prior year, indicating effective working capital management [32] Q&A Session Summary Question: Insights on product categories, specifically NetComm and storage - Management acknowledged a pause in spending in these markets but noted ongoing design discussions as a positive indicator for future activity [46][47] Question: Pricing landscape and ability to pass through tariff-related costs - Management expressed confidence in maintaining profitability despite potential price increases, citing a resilient gross margin [52][54] Question: Performance in healthcare and future channel performance - Strong healthcare results were attributed to strategic investments and increased cloud adoption, with expectations for continued growth [60][61] Question: Changes in order behavior in Q2 - Management reported solid underlying demand and a healthy rhythm in the commercial sector, with cautious optimism for future growth [66][67] Question: Guidance on EPS growth and buybacks - Management confirmed that buybacks are embedded in the EPS guidance, with a focus on returning 50% to 75% of adjusted free cash flow to shareholders [70][88] Question: Hiring plans and wage inflation - Management plans to maintain a balanced approach to hiring while managing expenses prudently, with no significant wage inflation observed [84][87]

Core Insights - CDW reported quarterly earnings of $2.15 per share, exceeding the Zacks Consensus Estimate of $1.96 per share, and showing an increase from $1.92 per share a year ago, resulting in an earnings surprise of 9.69% [1] - The company generated revenues of $5.2 billion for the quarter ended March 2025, surpassing the Zacks Consensus Estimate by 6.25% and up from $4.87 billion year-over-year [2] - CDW has outperformed consensus revenue estimates three times in the last four quarters [2] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $2.44 on revenues of $5.41 billion, and for the current fiscal year, it is $9.53 on revenues of $21.05 billion [7] - The trend of estimate revisions for CDW is mixed, leading to a Zacks Rank 3 (Hold), indicating expected performance in line with the market [6] Industry Context - The Computers - IT Services industry, to which CDW belongs, is currently ranked in the top 39% of over 250 Zacks industries, suggesting a favorable outlook compared to lower-ranked industries [8] - Amdocs, another company in the same industry, is expected to report quarterly earnings of $1.71 per share, reflecting a year-over-year increase of 9.6% [9]

CDW Corporation Webcast Conference Call May 7, 2025 Today's Agenda First Quarter 2025 Results Performance Drivers Outlook Q&A 2 Forward-Looking Statements Statements in this presentation that are not statements of historical fact are forward-looking statements within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, including, without limitation, statements regarding the future financial performance, 2025 outlook, capital allocation priorities and growth pros ...

[Q1 2025 Earnings Overview](index=1&type=section&id=CDW%20Reports%20First%20Quarter%202025%20Earnings) CDW reported strong Q1 2025 results with significant revenue and profitability growth across all segments, driven by robust customer demand for technology solutions [Financial Highlights and Management Commentary](index=1&type=section&id=Financial%20Highlights%20and%20Management%20Commentary) CDW reported a strong start to 2025 with net sales up 6.7% to $5.2 billion and Non-GAAP diluted EPS rising 11.9% to $2.15, driven by strong customer demand and a balanced portfolio Q1 2025 Key Financial Metrics (vs. Q1 2024) | Metric | Q1 2025 | Q1 2024 | % Change | | :--- | :--- | :--- | :--- | | Net Sales | $5,199.1 M | $4,872.7 M | 6.7% | | Gross Profit | $1,122.3 M | $1,063.3 M | 5.5% | | Operating Income | $361.4 M | $328.0 M | 10.2% | | Non-GAAP Operating Income | $444.0 M | $403.5 M | 10.0% | | Net Income | $224.9 M | $216.1 M | 4.1% | | Non-GAAP Net Income | $286.5 M | $260.8 M | 9.9% | | Net Income per Diluted Share | $1.69 | $1.59 | 6.1% | | Non-GAAP Net Income per Diluted Share | $2.15 | $1.92 | 11.9% | - The Board of Directors approved a quarterly cash dividend of **$0.625** per common share, payable on June 10, 2025[3](index=3&type=chunk) - Management attributes the robust growth to the company's ability to meet compelling technology needs for customers, effective working capital management, and a strong value proposition as a trusted advisor across the full technology stack[4](index=4&type=chunk) - CDW continues to target exceeding US IT market growth by 200 to 300 basis points on a constant currency basis[4](index=4&type=chunk) [Detailed Financial Performance Analysis](index=2&type=section&id=First%20Quarter%20of%202025%20Highlights) Q1 2025 net sales grew 6.7% to $5.2 billion, driven by strong demand for technology solutions, while operating income rose 10.2% despite a slight gross profit margin decline - Net sales growth was primarily driven by customer demand for notebooks/mobile devices, desktops, software, and services, partially offset by decreases in other hardware categories[5](index=5&type=chunk) - Gross profit margin decreased slightly from **21.8%** to **21.6%** YoY, mainly due to an increased mix of lower-margin products like notebooks, which was partially offset by a higher contribution from netted down software-as-a-service revenue[6](index=6&type=chunk) - Selling and administrative expenses increased by **3.5%**, primarily due to higher performance-based compensation and transformation costs[7](index=7&type=chunk) - The effective income tax rate rose to **26.0%** in Q1 2025 from **21.9%** in Q1 2024, primarily due to lower excess tax benefits on equity-based compensation[10](index=10&type=chunk) - Non-GAAP net income increased by **9.9%** to **$287 million**, and Non-GAAP net income per diluted share grew **11.9%** to **$2.15**[11](index=11&type=chunk)[13](index=13&type=chunk) [Segment Performance](index=2&type=section&id=Segment%20Performance) All segments reported higher net sales, with the Public segment leading at 10.6% growth on an average daily sales basis, driven by strong Healthcare and Education performance Q1 2025 Net Sales Growth by Segment (Average Daily Sales Basis) | Segment | Q1 2025 Net Sales | YoY Growth (ADS) | | :--- | :--- | :--- | | Corporate | $2,236 M | 6.3% | | Small Business | $405 M | 7.9% | | Public | $1,878 M | 10.6% | | - Healthcare | $688 M | 19.5% | | - Education | $652 M | 11.1% | | Other (UK & Canada) | $680 M | 9.5% | [Financial Statements](index=6&type=section&id=Financial%20Statements) This section presents CDW's consolidated financial statements, including detailed operations, balance sheet, and cash flow, highlighting key financial positions and performance metrics [Consolidated Statements of Operations](index=6&type=section&id=CONSOLIDATED%20STATEMENTS%20OF%20OPERATIONS) Q1 2025 consolidated operations show net sales up 6.7% to $5.2 billion, operating income growing 10.2% to $361.4 million, and diluted EPS increasing 6.1% to $1.69 Q1 2025 Consolidated Statement of Operations Highlights | Line Item | Q1 2025 ($M) | Q1 2024 ($M) | % Change | | :--- | :--- | :--- | :--- | | Net sales | 5,199.1 | 4,872.7 | 6.7% | | Gross profit | 1,122.3 | 1,063.3 | 5.5% | | Operating income | 361.4 | 328.0 | 10.2% | | Income before income taxes | 304.0 | 276.6 | 9.9% | | Net income | 224.9 | 216.1 | 4.1% | | Diluted EPS | $1.69 | $1.59 | 6.1% | [Net Sales Detail](index=7&type=section&id=NET%20SALES%20DETAIL) Net sales grew 8.4% on an average daily sales basis, with the Public segment leading at 10.6% growth, and $4.42 billion of revenue recognized as principal Net Sales by Segment (Q1 2025 vs Q1 2024) | Segment | Net Sales 2025 ($M) | Net Sales 2024 ($M) | Avg. Daily Sales % Change | | :--- | :--- | :--- | :--- | | Corporate | 2,236.0 | 2,135.9 | 6.3% | | Small Business | 404.6 | 380.9 | 7.9% | | Total Public | 1,878.1 | 1,724.7 | 10.6% | | Other | 680.4 | 631.2 | 9.5% | | **Total Net sales** | **5,199.1** | **4,872.7** | **8.4%** | - In Q1 2025, **$4.42 billion** of revenue was recognized at a point in time with CDW as principal, **$410.2 million** as agent, and **$372.5 million** over time as principal; these figures are all higher than the corresponding period in 2024[33](index=33&type=chunk)[34](index=34&type=chunk) [Condensed Consolidated Balance Sheets](index=9&type=section&id=CONDENSED%20CONSOLIDATED%20BALANCE%20SHEETS) As of March 31, 2025, total assets increased to $15.0 billion, total liabilities to $12.7 billion, and stockholders' equity to $2.3 billion Balance Sheet Summary (as of March 31) | Item | 2025 ($M) | 2024 ($M) | | :--- | :--- | :--- | | Cash and cash equivalents | 471.4 | 803.8 | | Total current assets | 7,651.6 | 6,633.8 | | Total assets | 15,018.5 | 13,192.8 | | Total current liabilities | 5,781.5 | 5,261.0 | | Total debt (Current + Long-term) | 5,853.0 | 5,632.3 | | Total liabilities | 12,695.4 | 11,054.1 | | Total stockholders' equity | 2,323.1 | 2,138.7 | [Debt, Working Capital, and Cash Flow](index=10&type=section&id=DEBT%20AND%20WORKING%20CAPITAL%20INFORMATION) Q1 2025 ended with total debt of $5.85 billion, a 15-day cash conversion cycle, and net cash from operations of $287.2 million - The cash conversion cycle was **15 days**, composed of **86 days** of sales outstanding, **13 days** of supply in inventory, and offset by **84 days** of purchases outstanding[39](index=39&type=chunk)[40](index=40&type=chunk) Cash Flow Summary (Three Months Ended March 31) | Cash Flow Item | 2025 ($M) | 2024 ($M) | | :--- | :--- | :--- | | Net cash provided by operating activities | 287.2 | 440.0 | | Net cash used in investing activities | (31.9) | (29.7) | | Net cash used in financing activities | (294.1) | (192.6) | | Net (decrease) increase in cash | (32.1) | 215.1 | [Non-GAAP Reconciliations & Definitions](index=4&type=section&id=NON-GAAP%20FINANCIAL%20MEASURE%20RECONCILIATIONS) This section provides reconciliations of GAAP to non-GAAP financial measures, explaining their utility for assessing underlying business performance and liquidity [Explanation of Non-GAAP Measures](index=4&type=section&id=Explanation%20of%20Non-GAAP%20Measures) CDW utilizes non-GAAP measures like operating income and net income to provide investors with a clearer view of underlying operating performance by excluding specific non-recurring items - Key non-GAAP measures include Non-GAAP operating income, Non-GAAP operating income margin, Non-GAAP net income, Non-GAAP net income per diluted share, Net sales on a constant currency basis, and Free cash flow[20](index=20&type=chunk) - Management uses these non-GAAP measures to evaluate underlying operating performance, assess liquidity and capital resources, and determine components of performance-based compensation[21](index=21&type=chunk) [Reconciliation of Non-GAAP Operating Income](index=11&type=section&id=Reconciliation%20of%20Non-GAAP%20Operating%20Income) Q1 2025 GAAP operating income of $361.4 million was reconciled to Non-GAAP operating income of $444.0 million, with a resulting Non-GAAP operating margin of 8.5% Reconciliation of GAAP to Non-GAAP Operating Income (Q1 2025) | Description | Amount ($M) | | :--- | :--- | | **Operating income, as reported (GAAP)** | **361.4** | | Amortization of intangibles | 42.8 | | Equity-based compensation | 20.5 | | Transformation initiatives | 13.7 | | Other adjustments | 5.6 | | **Non-GAAP operating income** | **444.0** | [Reconciliation of Non-GAAP Net Income](index=12&type=section&id=Reconciliation%20of%20Non-GAAP%20Net%20Income) Q1 2025 GAAP net income of $224.9 million was reconciled to Non-GAAP net income of $286.5 million, leading to a Non-GAAP diluted EPS of $2.15 Reconciliation of GAAP to Non-GAAP Net Income (Q1 2025) | Description | Net Income ($M) | Diluted EPS ($) | | :--- | :--- | :--- | | **US GAAP, as reported** | **224.9** | **1.69** | | Amortization of intangibles (after tax) | 31.7 | | | Equity-based compensation (after tax) | 15.6 | | | Other adjustments (after tax) | 14.3 | | | **Non-GAAP** | **286.5** | **2.15** | [Other Reconciliations (Constant Currency & Free Cash Flow)](index=13&type=section&id=Other%20Reconciliations) Q1 2025 net sales grew 7.0% on a constant currency basis, with free cash flow at $260.3 million and adjusted free cash flow at $248.8 million - On a constant currency basis, Q1 2025 Net sales were **$5,199.1 million**, a **7.0%** increase from **$4,857.9 million** in the prior year[54](index=54&type=chunk) Free Cash Flow Reconciliation (Q1 2025) | Item | Amount ($M) | | :--- | :--- | | Net cash provided by operating activities | 287.2 | | Capital expenditures | (26.9) | | **Free cash flow** | **260.3** | | Net change in accounts payable - inventory financing | (11.5) | | **Adjusted free cash flow** | **248.8** | [Other Information](index=3&type=section&id=Other%20Information) This section includes important disclosures regarding forward-looking statements and company information, outlining potential risks and investor communication details [Forward-Looking Statements](index=3&type=section&id=Forward-Looking%20Statements) This section outlines standard forward-looking statement disclaimers, highlighting key risks such as inflationary pressures, interest rates, competition, and cybersecurity threats - The company claims protection under The Private Securities Litigation Reform Act of 1995 for all forward-looking statements[14](index=14&type=chunk) - Key risk factors mentioned include: inflationary pressures, interest rates, vendor relationships, competition, cybersecurity threats, economic conditions, changes in technology spending, and supply chain interruptions[16](index=16&type=chunk) [About CDW and Investor Relations](index=5&type=section&id=About%20CDW%20and%20Investor%20Relations) CDW, a Fortune 500 IT solutions provider, announced a conference call and webcast to discuss Q1 2025 results for investors and media - CDW is a leading multi-brand provider of IT solutions and a Fortune 500 company[24](index=24&type=chunk) - A conference call to discuss financial results was scheduled for May 7, 2025, with a live webcast available on the company's investor relations website[25](index=25&type=chunk)

Core Viewpoint - CDW Corporation is expected to report first-quarter 2025 results on May 7, with revenue estimates of $4.89 billion, indicating a 0.4% growth year-over-year, and earnings per share estimated at $1.96, reflecting a 2.08% increase from the previous year [1][2]. Group 1: Upcoming Results Expectations - The Zacks Consensus Estimate for revenues is $4.89 billion, suggesting a 0.4% growth from the year-ago quarter's reported figure [1]. - The consensus estimate for earnings is pegged at $1.96 per share, unchanged in the past 60 days, indicating an increase of 2.08% from the year-ago quarter's reported figure [1]. - CDW's earnings have missed the Zacks Consensus Estimate in three of the last four quarters, with an average negative surprise of 3.1% [2]. Group 2: Factors Influencing Performance - Increasing momentum in cloud and SaaS is likely to have aided CDW's top line, with security and cloud revenues benefiting from customer spending priorities on cost optimization, data protection, and workforce productivity [3]. - Elevated demand for consumer devices, particularly Notebooks and Chromebooks, along with steady growth in software and services, is expected to drive revenue growth, with Notebooks/Mobile Devices revenues estimated at $1,185.9 million, up 3.9% year-over-year [4]. - Revenues from Corporate, Government, and Healthcare sectors are expected to be $2,120.3 million, $512.4 million, and $552.3 million, reflecting declines of 0.7%, 5.7%, and 5.5%, respectively, while Education and Small Business revenues are estimated to increase by 12% and 0.4% to $668.7 million and $382.4 million [5]. Group 3: Risks and Challenges - The company faces risks from a cautious customer approach due to challenges in managing workloads, strengthening security, and upgrading aging client devices, compounded by uncertain macroeconomic conditions [6]. - Slower public spending in federal and education sectors, along with rising uncertainty in the U.K. and Canada, may negatively impact CDW's performance in the upcoming quarter [7]. Group 4: Earnings Prediction Model - The model predicts an earnings beat for CDW, supported by a positive Earnings ESP of +1.02% and a Zacks Rank of 3 (Hold), which increases the likelihood of an earnings beat [8].

Core Viewpoint - CDW is expected to report quarterly earnings of $1.96 per share, reflecting a 2.1% increase year-over-year, with revenues projected at $4.89 billion, a 0.4% increase compared to the previous year [1]. Earnings Estimates - Over the last 30 days, the consensus EPS estimate has been revised downward by 2.8%, indicating a collective reassessment by analysts [2]. - Changes in earnings estimates are crucial for predicting investor reactions, as empirical studies show a strong correlation between earnings estimate revisions and short-term stock performance [3]. Revenue Projections - Analysts estimate 'Public- Government' revenues to be $497.84 million, representing an 8.4% decrease year-over-year [4]. - 'Net sales- Public' are projected at $1.73 billion, indicating a 0.3% increase from the previous year [5]. - 'Public- Healthcare' is expected to reach $630.71 million, reflecting a 7.9% increase year-over-year [5]. - 'Net sales- Small Business' are estimated at $380.47 million, showing a slight decrease of 0.1% from the prior year [5]. - 'Public- Education' is projected at $601.26 million, a 0.8% increase from the previous year [6]. - 'Net sales- Corporate' are expected to be $2.16 billion, indicating a 0.9% increase year-over-year [6]. - 'Net sales- Other' are projected at $637.67 million, reflecting a 1% increase from the prior year [6]. Major Product and Services Estimates - 'Net sales- Major Product and Services- Other' are expected to be $25.82 million, indicating a 2.2% decrease year-over-year [7]. - 'Net sales- Major Product and Services- Hardware- Notebooks/Mobile Devices' are projected at $1.18 billion, reflecting a 3.5% increase [7]. - 'Net sales- Major Product and Services- Hardware- Netcomm Products' are estimated at $587.46 million, indicating a 3.1% increase [8]. - 'Net sales- Major Product and Services- Hardware- Desktops' are expected to reach $260.28 million, reflecting a 0.7% increase [8]. - Overall, 'Net sales- Major Product and Services- Hardware' are projected at $3.54 billion, indicating a slight decrease of 0.1% year-over-year [9]. Stock Performance - CDW shares have increased by 7.2% over the past month, contrasting with a 0.5% decline in the Zacks S&P 500 composite [9].

Core Viewpoint - The market anticipates CDW to report a year-over-year increase in earnings driven by higher revenues in its upcoming earnings report for the quarter ended March 2025, with a focus on how actual results compare to estimates [1][2]. Earnings Expectations - CDW is expected to post quarterly earnings of $1.96 per share, reflecting a year-over-year change of +2.1%, while revenues are projected to be $4.89 billion, up 0.4% from the previous year [3]. - The consensus EPS estimate has been revised 2.79% lower over the last 30 days, indicating a reassessment by analysts [4]. Earnings Surprise Prediction - The Zacks Earnings ESP model indicates that the Most Accurate Estimate for CDW is higher than the Zacks Consensus Estimate, resulting in an Earnings ESP of +1.02% [10][11]. - Despite the positive Earnings ESP, CDW currently holds a Zacks Rank of 4, complicating predictions of an earnings beat [11]. Historical Performance - In the last reported quarter, CDW was expected to earn $2.33 per share but exceeded expectations with earnings of $2.48, achieving a surprise of +6.44% [12]. - Over the past four quarters, CDW has only beaten consensus EPS estimates once [13]. Investment Considerations - An earnings beat or miss may not solely dictate stock movement, as other factors can influence investor sentiment [14]. - While betting on stocks expected to beat earnings increases the odds of success, CDW does not currently appear to be a compelling earnings-beat candidate [15][16].

Group 1: Company Performance - CDW shares increased by 9.2% to $159.48, following a 12.1% loss over the past four weeks, indicating a rebound in business momentum across all sales units and global markets [1] - The cloud and SaaS business saw strong growth, with software sales up 5%, driven by double-digit growth in SaaS and IaaS, and a significant impact on profits with gross profit rising in the mid-teens [2] - CDW Managed Services grew by over 20%, and the company aims to outpace the U.S. IT market by 2–3% in 2025, supported by a customer base of over 250,000 [2] Group 2: Financial Expectations - CDW is expected to report quarterly earnings of $1.96 per share, reflecting a year-over-year change of +2.1%, with revenues projected at $4.9 billion, up 0.7% from the previous year [3] - The consensus EPS estimate for CDW has remained unchanged over the last 30 days, suggesting that stock price movements may be influenced by trends in earnings estimate revisions [5] Group 3: Market Position and Comparisons - CDW's share buyback programs and robust cash flow are seen as positive factors for the company's prospects [3] - In comparison, Taboola.com Ltd. (TBLA) closed the last trading session 9.1% higher, but has returned -12.1% in the past month, indicating differing performance within the same industry [5]

Core Insights - CDW Engineering has partnered with Ecovert to launch Climate Enhanced Building Condition Assessments (CE-BCA), integrating decarbonization planning and climate resilience into traditional assessments [1][2] - The CE-BCA addresses the increasing pressure on the real estate industry regarding sustainability, regulatory compliance, and ESG considerations [2] - This service provides property owners and investors with critical insights into emissions profiles and carbon reduction opportunities, aligning with Canada's net-zero goals [3][6] Comprehensive Report Features - The CE-BCA delivers a single, comprehensive report that evaluates a property's climate risks, resiliency, and carbon footprint [6] - It includes recommendations for energy-efficient replacements and a single-source cost estimate to avoid contradictory information [7] - The assessment identifies incentive programs to offset capital costs related to sustainable upgrades, enhancing long-term property value [6][7] Company Background - CDW Engineering is a leading provider of commercial property inspection and engineering consulting services in Canada, with decades of experience [4] - Ecovert specializes in sustainable building solutions, focusing on reducing carbon footprints and improving energy efficiency through innovative strategies [5]

Core Viewpoint - CDW's recent earnings report shows a mixed performance with a slight decline in year-over-year earnings, while revenues have grown modestly, indicating a challenging demand environment across various segments [2][3][4]. Financial Performance - CDW reported Q4 2024 non-GAAP EPS of $2.48, exceeding the Zacks Consensus Estimate of $2.33, but reflecting a 3.5% year-over-year decline [2]. - Revenues for Q4 2024 increased by 3.3% year-over-year to $5.186 billion, surpassing the consensus estimate of $4.97 billion, driven by strong performance in Corporate, Small Business, Public, and International segments [3]. - For the full year 2024, net sales decreased by 1.8% year-over-year to $21 million due to cautious technology spending, although the healthcare vertical grew by 7.1% [4]. Segment Analysis - Corporate segment net sales were $2.345 billion, up 2.6% year-over-year [5]. - Small Business segment net sales rose 2.7% year-over-year to $380 million [5]. - Public segment revenues totaled $1.854 billion, a 4.4% increase, with healthcare customer sales surging by 27.5%, while government and education sectors saw declines [5][6]. Margin and Expenses - Gross profit was $1.155 billion, a slight increase of 0.1% year-over-year, but gross profit margin decreased from 23% to 22.3% due to a higher mix of notebook and desktop sales [7]. - Non-GAAP operating income fell 3.8% year-over-year to $499 million, with the operating margin declining to 9.6% from 10.3% [7]. - Selling and administrative expenses increased by 3.9% year-over-year to $747 million, driven by various cost factors [8]. Balance Sheet and Cash Flow - As of December 31, 2024, CDW had cash and cash equivalents of $503.5 million, down from $946.7 million as of September 30, 2024 [9]. - Long-term debt remained stable at $5.607 billion [9]. - Cash flow from operating activities for the year was $1.277 billion, compared to $1.6 million in the previous year [9]. Market Outlook - Estimates for CDW have trended downward over the past month, indicating a cautious outlook [10][12]. - The stock currently holds a Zacks Rank 3 (Hold), suggesting an expectation of in-line returns in the near term [12]. Industry Comparison - CDW operates within the Zacks Computers - IT Services industry, where competitor Amdocs reported a revenue decline of 10.9% year-over-year, contrasting with CDW's modest growth [13]. - Amdocs is expected to post earnings of $1.71 per share for the current quarter, reflecting a 9.6% increase from the previous year [14].