CDW Q1 Earnings And Revenues Surpass Estimates, Improve Y/Y
Zacks Investment Research | May 01, 2019 11:35PM ET
CDW Corporation’s (NASDAQ:CDW) first-quarter 2019 non-GAAP earnings per share rose 18.2% year over year to $1.24 and also beat the Zacks Consensus Estimate of $1.10.
Revenues in the reported quarter totaled $3.96 billion, marking a year-over-year rise of 9.7% and also topping the Zacks Consensus Estimate of $3.77 billion. Moreover, revenues were up 12.4% at constant currency (cc).
The company’s balanced portfolio of customer end-markets and the breadth of its product and solutions pipeline are key drivers. Results also include two months of Scalar, which performed in line with the company’s expectations.
Quarter in Detail
CDW’s net sales of $1.74 billion registered nearly 12.6% growth on a year-over-year basis. This upside was driven by double-digit growth in both transactions and solutions. During the quarter under review, client devices increased more than 20%.
Small Business segment’s net sales of $356 million increased 10.3% year over year. Sales growth was primarily driven by a double-digit rise in transactions and high-single digit growth in solutions. Also, client device augmented approximately 20% in the reported quarter. Plus 50% surge in software-as-a service is a tailwind this quarter under review.
Coming to Public segment, net sales of $1.3 billion climbed 9.9% from the year-earlier quarter. Moreover, revenues from Government, Healthcare customers and Education customers were up 18.6%, 8.4% and 2.4%, respectively. Despite the government shutdown, the government channel delivered a strong performance.
Net sales in Other ascended 12.6% to $536 million. Other segment comprises the outcomes of the company’s Canadian and UK operations.
Moreover, CDW witnessed a solid uptick across hardware, software and services. Hardware grew 10% while software and Services were up 18% and 16%, each.
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