CDW Corp. (NASDAQ:CDW) shares are trading higher after the company reported better-than-expected first-quarter results.
Net sales rose 6.7% year-over-year (Y/Y) to $5.199 billion, beating the consensus of $4.93 billion. Net sales from the Corporate segment increased 6.3% Y/Y to $2.24 billion, and the Small Business segment rose 7.9% Y/Y to $405 million.
Public segment net sales rose 10.6% Y/Y to $1.89 billion, led by higher net sales to Health care customers of 19.5% in the quarter.
Net sales for CDW's U.K. and Canadian operations rose 9.5% Y/Y to $680 million.
Average daily sales surged 8.4% Y/Y to $82.5 million, led by higher customer demand for notebooks/mobile devices, desktops, software, and services.
Gross margin contracted to 21.6% from 21.8% in the quarter.
The adjusted operating margin was 8.5% vs. 8.3% a year ago. Adjusted EPS of $2.15 beat the consensus of $1.96.
CDW held $471.4 million in cash and equivalents as of March 31, 2025.
Dividend: The company declared a quarterly cash dividend of $0.625 per share, payable on June 10, to all stockholders of record as of May 26, 2025.
Albert J. Miralles, CDW chief financial officer, said, “In this rapidly evolving environment, our value proposition is stronger than ever as customers turn to CDW as a trusted advisor with the breadth, depth, expertise and scale across the full technology stack and lifecycle. We continue to target exceeding U.S. IT market growth by 200 to 300 basis points on a constant currency basis.”
”To achieve this, we will maintain our laser focus on meeting the evolving needs of our more than 250,000 customers around the globe and remaining the partner of choice for more than 1,000 leading and emerging technology brands.”
CDW Price Action: CDW shares are up 7.23% at $175.79 at publication on Wednesday.
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