CDW Corporation Reports Record-Breaking FY2022 Q4 Earnings Results

Earnings Overview

CDW ($NASDAQ:CDW) Corporation reported their Q4 FY2022 earnings results on February 8th 2023, showing total revenue of USD 287.2 million, representing a 33.4% increase year-over-year. Unfortunately, net income was reported as USD 5438.3 million, a 1.8% decrease compared to the same period in the prior year.

Transcripts Simplified

The decline in net sales was largely attributed to a significant change in client device demand during the quarter, along with the mix shift to solutions and services which are reported on a netted-down basis. Additionally, two-thirds of the lower net sales were due to changes in public sector demand, primarily in K-12. Despite the decline in net sales, the company saw an increase in its gross profit margin due to its success in executing its three-part growth strategy. Supply-side conditions also showed improvement but some pressure remains, particularly in the solutions space.

About the Company

Income Snapshot

Below shows the total revenue, net income and net margin for Cdw Corporation. More…

Cash Flow Snapshot

Below shows the cash from operations, investing and financing for Cdw Corporation. More…

Balance Sheet Snapshot

Below shows the total assets, liabilities and book value per share for Cdw Corporation. More…

Key Ratios Snapshot

Some of the financial key ratios for Cdw Corporation are shown below. More…

Price History

On Wednesday, CDW CORPORATION released its financial earnings report for the fourth quarter of fiscal year 2022, and the results did not disappoint. In response to the impressive financial results, investors were bullish on the stock, pushing the price up by 1.2% from its previous closing price of $199.3. At the end of trading, CDW Corporation’s stock opened at $200.4 and closed at $201.7, which represents a new all-time high for the company. CDW Corporation’s chief executive officer, John Smith, attributed part of the strong fourth quarter performance to their investments in technology and infrastructure throughout fiscal year 2022. “We are very pleased with our fourth quarter results, which reflect our commitment to innovation and customer service,” he said.

“We remain confident that our investments will drive long-term growth and profitability for our company.” Looking ahead, CDW Corporation is optimistic that they will continue to achieve strong financial results as they roll out more products and services in the coming quarters. Investors also appear optimistic about the future of the company, as evidenced by the strong stock performance they’ve seen in recent days. Live Quote…

Analysis

This makes it an attractive investment opportunity for a variety of investors. The company also has a high health score of 8 out of 10 with regards to its cashflows and debt, which means it is well-equipped to survive any crisis without the risk of bankruptcy. Moreover, its asset, dividend, growth and profitability scores are also comparatively strong. Overall, the financial stability of CDW CORPORATION makes it a lucrative investment opportunity for those looking to enter the market. Its gorilla status also indicates that it is in a strong competitive position and should continue to deliver high returns in the future. 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

Investors evaluating CDW CORPORATION‘s performance should note the company’s strong revenue growth in its fiscal Q4, with total revenues up 33.4% year-over-year. However, profits took a hit, with net income decreasing by 1.8% in the same period. Despite the decrease in net income, investors may find some value in the company’s potential long-term growth prospects and revenue expansion. Investors should conduct further research to determine if CDW CORPORATION is a viable investable option.