CDW Corp (CDW) Reports 5.9% Increase in Net Income for Q3 2023
CDW Corp (NASDAQ:CDW) reports a 5.9% increase in net income for Q3 2023, despite a 9.4% decrease in net sales.
Operating income rose by 2.6% compared to Q3 2022.
The company announced a quarterly cash dividend of $0.62 per share.
CDW Corp (NASDAQ:CDW) continues to convert earnings to cash at a productive rate, ahead of targets.
CDW Corp (NASDAQ:CDW), a leading multi-brand provider of information technology solutions, released its third quarter 2023 earnings on November 1, 2023. Despite a decrease in net sales, the company reported a 5.9% increase in net income, demonstrating the resilience of its business model and strategy.
Financial Performance
CDW Corp (NASDAQ:CDW) reported net sales of $5,628 million in Q3 2023, a decrease of 9.4% compared to $6,216 million in Q3 2022. This decline was primarily driven by the Corporate and Small Business segments and the company's UK and Canadian operations. Despite the decrease in net sales, the company's net income increased by 5.9% to $315.5 million, up from $297.8 million in Q3 2022. The company's operating income also saw a rise of 2.6% compared to the same period last year.
Dividend Announcement
Alongside its Q3 2023 results, CDW Corp (NASDAQ:CDW) announced the approval of a quarterly cash dividend of $0.62 per share by its Board of Directors. This dividend will be paid on December 12, 2023, to all stockholders of record as of the close of business on November 24, 2023. This marks the tenth consecutive year that CDW has increased its dividend since its 2013 IPO.
Management Commentary
Christine A. Leahy, chair and chief executive officer of CDW, commented on the company's performance, stating,
This quarter's exceptional profitability underscores the power of our strategy when underpinned by our resilient business model, relentless execution, and financial rigor."
Albert J. Miralles, chief financial officer of CDW, also highlighted the company's strong operating results and disciplined approach to capital allocation, which delivered record earnings per share results.
Looking Ahead
Despite the ongoing economic uncertainty, CDW Corp (NASDAQ:CDW) remains well-positioned to exceed US IT market growth by 200 to 300 basis points on a constant currency basis. The company will continue to focus on meeting the needs of its customers and remaining the partner of choice for leading and emerging technology brands.
Explore the complete 8-K earnings release (here) from CDW Corp for further details.
This article first appeared on GuruFocus.
