Why Electronic Equipment Company CDW Shares Are Up Today
Portfolio Pulse from Lekha Gupta
CDW Corp (NASDAQ:CDW) shares rose after reporting Q4 FY23 results, despite a 7.7% Y/Y decline in net sales to $5.02 billion, missing consensus estimates. The company saw declines across all segments but reported an expanded gross margin of 23.0% and a non-GAAP EPS of $2.57, slightly above consensus. CDW also announced a 5% Y/Y increase in its quarterly dividend to $0.62 and a $750 million increase in its share repurchase program. Looking ahead, CDW aims to outpace US IT market growth by 200-300 basis points in 2024.
February 07, 2024 | 5:31 pm
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CDW Corp reported a 7.7% Y/Y decline in net sales but saw an expanded gross margin and a slight beat on non-GAAP EPS. The company increased its quarterly dividend by 5% Y/Y and announced a $750 million increase in its share repurchase program.
Despite the decline in net sales, the increase in gross margin and non-GAAP EPS, along with the positive news on dividend increase and share repurchase program, are likely to be viewed positively by investors, leading to a short-term positive impact on CDW's stock price.
CONFIDENCE 90
IMPORTANCE 90
RELEVANCE 100