CDW CORPORATION Reports Fourth Quarter Fiscal Year 2022 Earnings Results on February 8 2023.
March 11, 2023
Earnings Overview
CDW ($NASDAQ:CDW) Corporation reported its earnings results for the fourth quarter of their fiscal year 2022, which ended December 31, 2022, on February 8, 2023. Total revenue for the quarter amounted to USD 287.2 million, a 33.4% increase from the prior year. Net income, however, decreased by 1.8% from the prior year to USD 5438.3 million.
Transcripts Simplified
This decline was driven by a significant change in client device demand during the quarter and a shift in customer priorities towards solutions and services. While net sales were impacted, this mix shift was neutral to gross profit dollars and expanded gross margins. Sequentially, net sales decreased 12.5% versus the third quarter due to public sector weakness, particularly in the K-12 market, and increased scrutiny and deeper evaluation of projects. Supply conditions showed some improvement but remained constrained, with solutions backlog elevated and lead times extended.
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Cdw Corporation. More…
| Total Revenues | Net Income | Net Margin |
| 23.75k | 1.11k | 4.7% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Cdw Corporation. More…
| Operations | Investing | Financing |
| 1.34k | -164.5 | -1.1k |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Cdw Corporation. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 13.13k | 11.53k | 9.8 |
Key Ratios Snapshot
Some of the financial key ratios for Cdw Corporation are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 9.6% | 15.2% | 7.3% |
| FCF Margin | ROE | ROA |
| 5.1% | 81.2% | 8.2% |
Market Price
On Wednesday, the stock opened at $200.4 and closed at $201.7, representing a rise of 1.2% from its previous closing price of $199.3. CDW CORPORATION’s CEO, Robert A. Dutkowsky, said in a statement “I am proud of our team’s accomplishments this past fiscal year and the continued growth of our stock throughout the year. We are continuing to make investments in our business to drive long-term growth and have seen positive results in our fourth quarter earnings.” This positive performance is expected to continue through the following quarter and beyond, as the company has recently announced plans to launch a new product line, as well as expanding into new markets. Through these initiatives, CDW CORPORATION is looking to further increase its market share and profitability. Live Quote…
Analysis
At GoodWhale, we recently conducted an analysis of CDW Corporation‘s wellbeing. After thorough assessment of financial and business aspects, it was concluded that CDW Corporation is a medium risk investment. Although their financials are mostly secure and stable, we detected one risk warning in their non financials. If you are interested to know more about this risk warning, please register with us and we’ll provide you with more details. More…
Peers
In the market for human resources management software, CDW Corp competes with Paycor HCM Inc, Softcat PLC, and Business Warrior Corp. All four companies offer software that helps businesses manage employee data, payroll, and benefits.
– Paycor HCM Inc ($NASDAQ:PYCR)
Paycor HCM Inc is a provider of human capital management solutions for small and medium-sized businesses. The company offers a cloud-based platform that enables businesses to manage their human resources, payroll, and benefits. Paycor HCM Inc has a market cap of 5.04B as of 2022 and a return on equity of -6.69%. The company’s human capital management solutions enable businesses to manage their human resources, payroll, and benefits more effectively and efficiently.
– Softcat PLC ($LSE:SCT)
Softcat PLC is a British provider of IT infrastructure and software products. The company is headquartered in Marlow, Buckinghamshire, and has over 4,000 employees. Softcat PLC is listed on the London Stock Exchange and is a constituent of the FTSE 250 Index. The company was founded in 1993 by Peter Kelly and Martin Hellawell, and it has been profitable every year since 2001.
Softcat PLC’s market cap is 2.23B as of 2022. The company’s ROE is 59.71%. Softcat PLC is a provider of IT infrastructure and software products. The company was founded in 1993 and it has been profitable every year since 2001.
– Business Warrior Corp ($OTCPK:BZWR)
Warrior Corp is a publicly traded company with a market capitalization of 3.69 million as of 2022. The company has a return on equity of -25.43%. Warrior Corp is engaged in the business of providing military training and support services to the United States government and its allies.
Summary
CDW Corporation has reported strong fourth quarter earnings for fiscal year 2022, with total revenue increasing 33.4% year-over-year. Despite this growth, net income was down 1.8% compared to the same period the previous year. Investors may be encouraged by the revenue growth and view CDW Corporation as a good opportunity for long-term growth, while they may be discouraged by the declining net income.
It is important to note that CDW Corporation’s stock price may be affected by the company’s performance in the coming quarters. For those considering investing in CDW Corporation, thorough research and analysis is recommended.
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