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CDW 8-K Report, Financial Results (Feb 5, 2025)

Reports
Earnings & Results·Other Events·Exhibits & Filings
Filing Date
Filed February 5, 2025
Period End
February 5, 2025
Security
CDW
In the record · 2016–202610-K1110-Q328-K113

CDW filed 11 annual reports (10-K), 32 quarterly reports (10-Q) and 113 current reports (8-K) between 2016 and 2026.

  1. Material agreement8-K · Mar ’17Mar ’17
  2. Material agreement8-K · Aug ’20Aug ’20
  3. Leadership change8-K · Feb ’23Feb ’23
  4. Leadership change8-K · Oct ’26Oct ’26

01—Abstract

Summary

Summary of the 8-K filed February 5, 2025. Cited figures are marked; the original filing is the authoritative source.

CDW Corporation reported fourth quarter and full year 2024 results in a press release furnished as Exhibit 99.1.

For the fourth quarter, Net sales were $5,186.0 milliona, up 3.3% from $5,018.5 million, and Average Daily Sales rose 5.0%. Gross profit was $1,155.3 million, roughly flat versus $1,153.8 million, with gross profit margin declining to 22.3% from 23.0%. Operating income fell 6.1% to $408.6 million, and net income fell 10.8% to $264.2 million, or $1.97 per diluted share versus $2.18 a year earlier.

Non-GAAP net income per diluted share was $2.48b, down 3.7%. For full year 2024, Net sales were $20,998.7 million, down 1.8% from $21,376.0 million, with the company citing cautious customer technology spending. Operating income was $1,651.3 million, down 1.8%, and net income was $1,077.8 million, down 2.4%, or $7.97 per diluted share versus $8.10.

Net cash provided by operating activities was $1,277.3 millionc, and Free cash flow was $1,154.7 million. Total debt was $5,842.8 million at year-end, with net debt of $5,125.1 million. Capital allocation actions were also announced under Item 8.01.

The Board authorized a $750 milliond increase to the share repurchase program, incremental to $588 million unused as of December 31, 2024, and declared a quarterly cash dividend of $0.625 per share payable March 11, 2025 to holders of record on February 25, 2025. Management stated a 2025 target of exceeding US IT market growth by 200 to 300 basis points.

02—Key points

Key Highlights

  1. Q4 2024 Net sales rose 3.3% to $5,186.0 million, while Average Daily Sales increased 5.0% on one fewer selling day.
  2. Q4 gross profit margin declined to 22.3% from 23.0%, driven by mix toward notebooks/mobile devices and desktops and lower rates across various product categories.
  3. Full year 2024 Net sales fell 1.8% to $20,998.7 million, with declines in Corporate, Small Business, Public and Other segments; Healthcare Public sales grew 7.1%.
  4. Full year 2024 net income was $1,077.8 million ($7.97 per diluted share), down 2.4%; Non-GAAP net income per diluted share was $9.52, down 3.6%.
  5. Net cash provided by operating activities was $1,277.3 million in 2024, and Free cash flow was $1,154.7 million.
  6. The Board authorized a $750 million increase to the share repurchase program, incremental to $588 million unused as of December 31, 2024.
  7. Quarterly cash dividend of $0.625 per share declared, 1 percent higher than the prior year period, payable March 11, 2025.

03—Questions

Frequently Asked Questions

  1. How did CDW perform in the fourth quarter of 2024?

    Net sales rose 3.3% to $5,186.0 million, and Average Daily Sales grew 5.0%. However, operating income fell 6.1% to $408.6 million and net income fell 10.8% to $264.2 million, as gross profit margin declined to 22.3% from 23.0%.

  2. Why did full-year 2024 net sales decline?

    The company said continued economic uncertainty and a complex technology landscape led customers to be cautious and measured in technology spending. Net sales fell 1.8% to $20,998.7 million, with all operating segments declining.

  3. What capital return actions did CDW announce?

    The Board authorized a $750 million increase to the share repurchase program, incremental to $588 million unused as of December 31, 2024. It also declared a quarterly cash dividend of $0.625 per share, payable March 11, 2025 to stockholders of record on February 25, 2025.

  4. What is CDW's outlook for 2025?

    CEO Christine A. Leahy stated that for 2025 the company continues to target exceeding US IT market growth by 200 to 300 basis points.

  5. What was CDW's liquidity and leverage position at year-end 2024?

    Cash and cash equivalents were $503.5 million and short-term investments were $214.2 million. Total debt was $5,842.8 million and net debt was $5,125.1 million, with revolver availability of $1,244.1 million.

04—Continue

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