CDW Corporation (CDW) reported first-quarter 2024 non-GAAP earnings per share (EPS) of $1.92, which missed the Zacks Consensus Estimate of $2.16. Also, the bottom line declined 5.5% year over year.The company’s revenues decreased 4.5% year over year to $4.872 billion. Net sales decreased 4.9% at constant currency. The downtick was caused due to weakness across all business segments. However, quarterly revenues beat the consensus mark of $4.396 billion.Separately, the company announced a quarterly dividend o ...

CDW (CDW) came out with quarterly earnings of $1.92 per share, missing the Zacks Consensus Estimate of $2.16 per share. This compares to earnings of $2.03 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of -11.11%. A quarter ago, it was expected that this information technology company would post earnings of $2.57 per share when it actually produced earnings of $2.57, delivering no surprise.Over the last four quarters, the compan ...

EXHIBIT 99.1 Interest expense, net includes interest expense and interest income. Interest expense, net was $51 million for the first quarter of 2024, compared to $58 million for the first quarter of 2023. The decrease was primarily due to higher interest income earned on cash balances and lower debt levels, partially offset by a higher variable interest rate on the senior unsecured term loan. This release contains "forward-looking statements" within the meaning of the federal securities laws. All statement ...

Investors are always looking for stocks that are poised to beat at earnings season and CDW Corporation (CDW) may be one such company. The firm has earnings coming up pretty soon, and events are shaping up quite nicely for their report.That is because CDW is seeing favorable earnings estimate revision activity as of late, which is generally a precursor to an earnings beat. After all, analysts raising estimates right before earnings — with the most up-to-date information possible — is a pretty good indicator ...

CDW Corporation (CDW) is slated to report first-quarter 2024 results on May 1.The Zacks Consensus Estimate for revenues is pegged at $4.94 billion, suggesting a decline of 3.3% from the year-ago quarter’s reported figure. The consensus estimate for earnings is pegged at $2.16 per share, indicating an increase of 6.4% from the year-ago quarter’s reported figure.CDW’s earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, the average surprise being 3.9%.Factors to NoteCDW’s first-qu ...

The upcoming report from CDW (CDW) is expected to reveal quarterly earnings of $2.16 per share, indicating an increase of 6.4% compared to the year-ago period. Analysts forecast revenues of $4.94 billion, representing a decrease of 3.3% year over year.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 earn ...

The market expects CDW (CDW) to deliver a year-over-year increase in earnings on lower revenues when it reports results for the quarter ended March 2024. This widely-known consensus outlook is important in assessing the company's earnings picture, but a powerful factor that might influence its near-term stock price is how the actual results compare to these estimates.The stock might move higher if these key numbers top expectations in the upcoming earnings report, which is expected to be released on May 1. ...

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PART I [Item 1. Business](index=6&type=section&id=Item%201.%20Business) CDW is a Fortune 500 and S&P 500 company providing IT solutions and services to over **250,000** customers across various sectors in the US, UK, and Canada - CDW is a leading multi-brand provider of IT solutions to over **250,000** customers in the US, UK, and Canada, operating as a Fortune **500** company and a member of the S&P **500** Index[48](index=48&type=chunk)[50](index=50&type=chunk) - The company's offerings span from discrete hardware and software to integrated IT solutions, including on-premise and cloud capabilities across hybrid infrastructure, digital experience, and security[48](index=48&type=chunk)[69](index=69&type=chunk) - CDW operates through three reportable segments: Corporate (US private sector, >**250** employees), Small Business (US private sector, <**250** employees), and Public (US government, education, healthcare) Operations in the UK and Canada are categorized as 'Other'[52](index=52&type=chunk) | Category | 2023 Net Sales | 2023 % of Total | 2022 Net Sales | 2022 % of Total | | :--- | :--- | :--- | :--- | :--- | | Total Hardware | $15,702.6M | 73.5% | $18,091.0M | 76.1% | | Software | $3,799.3M | 17.8% | $3,684.9M | 15.5% | | Services | $1,761.3M | 8.2% | $1,842.0M | 7.8% | | **Total Net Sales** | **$21,376.0M** | **100.0%** | **$23,748.7M** | **100.0%** | - The company partners with over **1,000** vendors, including major names like Apple, Cisco, Dell EMC, HP, and Microsoft In **2023**, the three largest vendor partners each generated **$2.0 billion** in Net sales for CDW[61](index=61&type=chunk)[62](index=62&type=chunk) [Item 1A. Risk Factors](index=14&type=section&id=Item%201A.%20Risk%20Factors) The company identifies various business, macroeconomic, legal, and debt-related risks, including vendor dependence, intense competition, cybersecurity threats, and **$5.6 billion** in total debt - A significant portion of sales comes from products by Apple, Cisco, Dell EMC, HP Inc., Lenovo, and Microsoft Over **25%** of total purchases are from two distributors, Ingram Micro and TD SYNNEX, highlighting vendor concentration risk[104](index=104&type=chunk) - The business faces substantial competition from a variety of players, including hardware resellers, direct manufacturers, and cloud providers Innovation, while an opportunity, can also disrupt the business model by enabling more direct-to-customer sales[107](index=107&type=chunk)[108](index=108&type=chunk) - Cybersecurity threats are a significant risk, as the business handles sensitive data Breaches could lead to legal claims, remediation costs, and reputational damage[123](index=123&type=chunk)[137](index=137&type=chunk) - Global and regional economic conditions, such as inflation and rising interest rates, may cause customers to delay or reduce technology spending, adversely affecting results[5](index=5&type=chunk)[6](index=6&type=chunk) - The company is exposed to legal and regulatory risks, including audits, intellectual property claims, and a False Claims Act investigation by the DOJ regarding teaming agreements with OEMs[1](index=1&type=chunk)[153](index=153&type=chunk)[164](index=164&type=chunk) - As of December **31**, **2023**, the company had **$5.6 billion** of total debt outstanding, which requires a substantial portion of cash flow for debt service and includes restrictive covenants that may limit operational flexibility[353](index=353&type=chunk) [Item 1B. Unresolved Staff Comments](index=25&type=section&id=Item%201B.%20Unresolved%20Staff%20Comments) The company reports no unresolved staff comments from the SEC - There are no unresolved staff comments[185](index=185&type=chunk)[377](index=377&type=chunk) [Item 1C. Cybersecurity](index=26&type=section&id=Item%201C.%20Cybersecurity) CDW maintains a comprehensive, ISO **27001** certified cybersecurity program led by a CISO with Board oversight, reporting no material threats as of the report date - The company has a dedicated cybersecurity team led by a CISO, with oversight from the Audit Committee, which receives regular reports on cybersecurity matters[378](index=378&type=chunk)[379](index=379&type=chunk) - The information security management program is ISO **27001** certified and includes routine audits, penetration testing, and processes to manage third-party service provider risks[390](index=390&type=chunk) - As of the report date, no cybersecurity threats have materially affected or are reasonably likely to materially affect the company[187](index=187&type=chunk) [Item 2. Properties](index=26&type=section&id=Item%202.%20Properties) As of December **31**, **2023**, CDW owned or leased **2.3 million** square feet of space, including two key distribution centers in North Las Vegas, NV, and Vernon Hills, IL - The company owns or leases **2.3 million** square feet of space, primarily in the US, UK, and Canada[391](index=391&type=chunk) - Key owned properties include a distribution center in North Las Vegas, Nevada, and a combined office/distribution center in Vernon Hills, Illinois[391](index=391&type=chunk) [Item 3. Legal Proceedings](index=26&type=section&id=Item%203.%20Legal%20Proceedings) The company is involved in various legal proceedings arising in the ordinary course of business, with specific details referenced in Note **16** of the Consolidated Financial Statements - CDW is party to various legal proceedings arising in the ordinary course of business[189](index=189&type=chunk)[154](index=154&type=chunk) [Item 4. Mine Safety Disclosures](index=27&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) This item is not applicable to the company - Not applicable[191](index=191&type=chunk) PART II [Item 5. Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities](index=28&type=section&id=Item%205.%20Market%20for%20Registrant%27s%20Common%20Equity%2C%20Related%20Stockholder%20Matters%20and%20Issuer%20Purchases%20of%20Equity%20Securities) CDW's common stock is listed on the Nasdaq Global Select Market, with the company announcing a new **$750 million** share repurchase authorization and continuing quarterly cash dividends - The company's common stock trades on the Nasdaq Global Select Market under the symbol "CDW" As of February **20**, **2024**, there were **4** holders of record[192](index=192&type=chunk)[393](index=393&type=chunk) | Period | Total Shares Purchased (millions) | Average Price Paid per Share | | :--- | :--- | :--- | | Oct 2023 | 0.1 | $204.19 | | Nov 2023 | 0.1 | $212.56 | | Dec 2023 | 0.0 | $219.02 | | **Total Q4 2023** | **0.2** | **N/A** | - On February **7**, **2024**, the Board of Directors authorized a **$750 million** increase to the share repurchase program[198](index=198&type=chunk) - The company expects to continue paying quarterly cash dividends, with the most recent being **$0.62** per share declared on February **7**, **2024**[197](index=197&type=chunk)[401](index=401&type=chunk) [Item 6. [RESERVED]](index=29&type=section&id=Item%206.%20%5BRESERVED%5D) This item is reserved and contains no information [Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=30&type=section&id=Item%207.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) In **2023**, CDW's Net sales decreased by **10.0%** to **$21.4 billion** due to reduced hardware spending, while Gross profit margin improved by **210** basis points to **21.8%**, and Net income remained relatively flat at **$1.10 billion** [Results of Operations](index=32&type=section&id=7.1%20Results%20of%20Operations) For the year ended December **31**, **2023**, Net sales decreased by **10.0%** to **$21.38 billion**, Gross profit decreased slightly by **0.7%** to **$4.65 billion**, and Operating income fell **3.1%** to **$1.68 billion** | Metric | 2023 | 2022 | % Change | | :--- | :--- | :--- | :--- | | Net Sales | $21,376.0 M | $23,748.7 M | (10.0)% | | Gross Profit | $4,652.4 M | $4,686.6 M | (0.7)% | | Operating Income | $1,680.9 M | $1,735.2 M | (3.1)% | | Net Income | $1,104.3 M | $1,114.5 M | (0.9)% | - The decrease in Net sales was driven by customers reducing or delaying hardware spending due to economic uncertainty[219](index=219&type=chunk) - Gross profit margin increased by **210** basis points to **21.8%**, primarily due to a more favorable contribution from netted down revenue (e.g., software as a service) and higher product margins[221](index=221&type=chunk) | Segment | 2023 Net Sales | % Change from 2022 | | :--- | :--- | :--- | | Corporate | $8,960.8 M | (13.4)% | | Small Business | $1,556.0 M | (19.7)% | | Public | $8,305.7 M | (2.9)% | | Other | $2,553.5 M | (12.2)% | [Liquidity and Capital Resources](index=37&type=section&id=7.2%20Liquidity%20and%20Capital%20Resources) The company maintains strong liquidity with **$1.2 billion** available under its revolving loan facility, **$1.60 billion** in cash from operations, and an improved cash conversion cycle of **17** days - As of December **31**, **2023**, the company had **$5.6 billion** in total debt and **$1.2 billion** of availability under its revolving loan facility[353](index=353&type=chunk)[259](index=259&type=chunk) | Cash Flow Metric | 2023 | 2022 | | :--- | :--- | :--- | | Net cash provided by operating activities | $1,598.7 M | $1,335.9 M | | Adjusted free cash flow | $1,426.8 M | $1,292.7 M | - The cash conversion cycle decreased to **17** days at year-end **2023** from **21** days in **2022**, primarily driven by a reduction in Days of Supply in Inventory (DIO)[274](index=274&type=chunk)[283](index=283&type=chunk) - In **2023**, the company repurchased **2.6 million** shares for **$500 million** and paid **$321.5 million** in dividends[267](index=267&type=chunk)[268](index=268&type=chunk) [Critical Accounting Policies and Estimates](index=41&type=section&id=7.3%20Critical%20Accounting%20Policies%20and%20Estimates) Management identifies critical accounting policies requiring significant judgment, including Revenue Recognition (principal vs agent), annual Goodwill impairment testing, and Business Combinations (purchase price allocation) - Revenue Recognition requires significant judgment in determining whether CDW is the principal (reporting gross revenue) or agent (reporting net revenue) in a transaction[298](index=298&type=chunk) - Goodwill is tested for impairment annually at the reporting unit level The **2023** annual analysis was a quantitative test which determined that the fair values of all reporting units substantially exceeded their carrying values[229](index=229&type=chunk)[215](index=215&type=chunk) - Business Combinations require significant estimates to allocate purchase price to the fair value of assets acquired and liabilities assumed, particularly for intangible assets like customer relationships[216](index=216&type=chunk)[217](index=217&type=chunk) [Item 7A. Quantitative and Qualitative Disclosures About Market Risk](index=42&type=section&id=Item%207A.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company's primary market risks stem from interest rate changes on its **$635 million** variable-rate debt and foreign currency fluctuations from its UK and Canadian subsidiaries - The company's main market risks are from changes in interest rates and foreign currency exchange rates[206](index=206&type=chunk)[228](index=228&type=chunk) - As of December **31**, **2023**, the company had **$635 million** of variable rate debt outstanding, exposing it to interest rate risk[366](index=366&type=chunk) - Foreign currency exposure results primarily from translating the financial statements of subsidiaries in the UK (British pound) and Canada (Canadian dollar) into US dollars[17](index=17&type=chunk)[196](index=196&type=chunk) [Item 8. Financial Statements and Supplementary Data](index=45&type=section&id=Item%208.%20Financial%20Statements%20and%20Supplementary%20Data) This section presents the company's audited consolidated financial statements for **2023**, **2022**, and **2021**, along with Ernst & Young LLP's unqualified opinion and a critical audit matter regarding professional services revenue recognition - The independent registered public accounting firm, Ernst & Young LLP, issued an unqualified opinion on the consolidated financial statements and the effectiveness of internal control over financial reporting[321](index=321&type=chunk)[322](index=322&type=chunk) - A Critical Audit Matter was identified related to the judgment required in determining estimated total costs for fixed-fee professional services projects, which impacts the timing of revenue recognition[315](index=315&type=chunk)[324](index=324&type=chunk) | Consolidated Balance Sheet (As of Dec 31, 2023) | Amount (in millions) | | :--- | :--- | | Total Current Assets | $6,705.0 | | Total Assets | $13,284.6 | | Total Current Liabilities | $5,442.0 | | Total Long-term Debt | $5,031.8 | | Total Liabilities | $11,242.1 | | Total Stockholders' Equity | $2,042.5 | [Item 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure](index=82&type=section&id=Item%209.%20Changes%20in%20and%20Disagreements%20with%20Accountants%20on%20Accounting%20and%20Financial%20Disclosure) The company reports no changes in or disagreements with its accountants on accounting and financial disclosure - None reported[619](index=619&type=chunk) [Item 9A. Controls and Procedures](index=82&type=section&id=Item%209A.%20Controls%20and%20Procedures) Management concluded that the company's disclosure controls and internal control over financial reporting were effective as of December **31**, **2023**, with no material changes during Q**4** **2023** - Management, including the CEO and CFO, concluded that the company's disclosure controls and procedures were effective as of December **31**, **2023**[620](index=620&type=chunk) - Management's assessment concluded that the company's internal control over financial reporting was effective as of December **31**, **2023**[627](index=627&type=chunk) - No changes in internal control over financial reporting occurred during the fourth quarter of **2023** that have materially affected, or are reasonably likely to materially affect, internal controls[628](index=628&type=chunk) [Item 9B. Other Information](index=84&type=section&id=Item%209B.%20Other%20Information) This section discloses that on August **7**, **2023**, CEO Christine Leahy adopted a Rule **10b5-1** trading plan for the exercise of stock options and sale of up to **51,437** shares of common stock - On August **7**, **2023**, CEO Christine Leahy adopted a Rule **10b5-1** trading plan for exercising stock options and selling up to **51,437** shares between November **2023** and April **2024**[633](index=633&type=chunk) [Item 9C. Disclosure Regarding Foreign Jurisdictions that Prevent Inspections](index=84&type=section&id=Item%209C.%20Disclosure%20Regarding%20Foreign%20Jurisdictions%20that%20Prevent%20Inspections) This item is not applicable to the company - None[429](index=429&type=chunk)[642](index=642&type=chunk) PART III [Items 10, 11, 12, 13, and 14](index=85&type=section&id=Items%2010%2C%2011%2C%2012%2C%2013%2C%20and%2014) Information for these items, covering Directors, Executive Compensation, Security Ownership, Related Transactions, and Accountant Fees, is incorporated by reference from the company's **2024** proxy statement - Information for Items **10** (Directors, Executive Officers and Corporate Governance), **11** (Executive Compensation), **12** (Security Ownership), **13** (Certain Relationships and Related Transactions), and **14** (Principal Accountant Fees and Services) is incorporated by reference from the **2024** Proxy Statement[43](index=43&type=chunk)[635](index=635&type=chunk)[644](index=644&type=chunk) PART IV [Item 15. Exhibits and Financial Statement Schedules](index=86&type=section&id=Item%2015.%20Exhibits%20and%20Financial%20Statement%20Schedules) This section lists all financial statements, schedules, and exhibits filed as part of the Form **10-K** report, including consolidated financial statements and various agreements - This section provides a comprehensive list of all financial statements, schedules, and exhibits filed with the Form **10-K**[664](index=664&type=chunk)[675](index=675&type=chunk) [Item 16. Form 10-K Summary](index=91&type=section&id=Item%2016.%20Form%2010-K%20Summary) The company reports no Form **10-K** summary - None[697](index=697&type=chunk)

VERNON HILLS, Ill.--(BUSINESS WIRE)--CDW Corporation (Nasdaq: CDW), a leading multi-brand provider of information technology solutions to business, government, education and healthcare customers in the United States, the United Kingdom and Canada, today announced that Albert J. Miralles, senior vice president and chief financial officer, CDW, will present at the Raymond James 45th Annual Institutional Investors Conference to be held at the JW Marriott Orlando Grande Lakes in Orlando, Florida on Monday, Marc ...