Shares of CDW (NASDAQ: CDW ) Corporation (NASDAQ: CDW) surged 5% after the company reported fourth quarter earnings and revenue that beat Wall Street expectations. The positive stock market reaction comes after CDW announced fourth quarter earnings per share of $2.48, which was $0.15 above analyst estimates of $2.33. Revenue for the quarter also beat forecasts, coming in at $5.19 billion versus a consensus estimate of $4.96 billion.
Despite the challenges posed by economic uncertainty throughout the year, CDW's fourth quarter net revenue increased 3.3% year-over-year from $5,019 million in the fourth quarter of 2023 to $5,186 million in the fourth quarter of 2024. This growth was driven by improvements in customer spending across all business segments. The company's average daily sales increased by 5.0%, with net sales rising by 4.9% on a constant currency basis.
However, CDW's full-year figures painted a different picture, with net sales for 2024 showing a slight decline of 1.8% compared to 2023, reflecting customer caution in the face of ongoing economic headwinds. Gross profit for the year also recorded a slight decrease of 1.1%.
CDW's Board of Directors approved a $750 million increase in share repurchase authorization and announced a quarterly cash dividend of $0.625 per share, a modest 1% increase over the prior year. Christine A. Leahy, Chairman and CEO, emphasized that the company's commitment to its clients and its advisory solutions strategy were key to overcoming the mixed market conditions.
The company's CFO, Albert J. Miralles, pointed to the strong gross margin and cash flow as signs of stability and emphasized CDW's ability to effectively manage working capital. Leahy also pointed to the company's focus on outpacing the growth of the U.S. IT market and maintaining its position as a preferred partner for technology brands.
https://www.investing.com/news/stock-market-news/cdw-stock-rises-on-q4-earnings-beat-93CH-3851142
