CDW (US:CDW) ZACKS·2024-10-30 15:20Financial 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]