CDW Corporation Takes a Hit After Preliminary Q1 Sales Fall Below Expectations
April 19, 2023
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CDW ($NASDAQ:CDW) Corporation, a publicly traded company on NASDAQ, took a major hit after preliminary Q1 sales figures showed that they had fallen significantly below expectations. After-hours trading saw CDW stock slip by around 11%, a significant drop for one of the most popular stocks on the market. CDW Corporation is a leading provider of technology products and services to businesses, government agencies, and educational institutions. Their products and services include hardware, software, professional services, and a range of related products and services. The company has a wide-reaching customer base that includes corporations, government institutions, and schools all over the world. The company’s stock had been steadily climbing for the past few months, but the Q1 sales figures were a major disappointment to shareholders and investors alike. Analysts had been predicting that Q1 sales would be strong, but the actual results fell far short of expectations.
This led to a significant drop in their stock price, with shares falling 11% in after-hours trading. It remains to be seen how CDW Corporation will respond to this setback. In the short term, it looks like it will take some time for the stock to recover its losses. The company may need to adjust their strategy in order to regain investor confidence and boost their sales. Only time will tell how CDW Corporation will handle this difficult situation.
Share Price
The company’s stock opened at $190.5 and closed at $190.3, representing only a 0.7% increase from the prior closing price of 188.9. This could be seen as a sign of investor disappointment with the company’s outlook for the quarter. The news comes at a time when CDW Corporation is in the middle of a strategic transformation to focus on cloud computing and managed services. While this shift should help the company remain competitive in the long run, it appears that it has yet to translate into higher sales in the first quarter.
It will be interesting to see how CDW Corporation performs for the rest of the year. Investors are hopeful that the company’s new strategies will begin to pay off and that their current quarter sales will rebound. Live Quote…
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 | 11.83 |
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% | 73.5% | 8.2% |
Analysis
GoodWhale has conducted a thorough analysis of CDW CORPORATION and we have determined that it is a medium risk investment. We took into account the company’s financial and business aspects in order to reach this conclusion. Our risk rating system proved to be a valuable tool in this regard. Additionally, GoodWhale has detected one risk warning in the non-financial aspect of CDW CORPORATION. If you are considering investing in this company, it is highly recommended that you become a registered user with GoodWhale in order to view this risk warning. Doing so ensures that you have all the necessary information at your disposal in order to make an informed decision. 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
The results fell below consensus estimates, causing investors to sell off the stock in after-hours trading, resulting in a 11% drop. Analysts have noted that CDW’s success rests largely on their ability to provide technology services to their clients, and so any changes in market conditions or customer demand can have a significant effect on their financial performance. Investors should keep an eye out for further updates from the company and monitor their operations closely going forward.
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