Q3 2023 Earnings Summary
Reported on Jan 4, 2025 (Before Market Open)
Pre-Earnings Price$200.40Last close (Oct 31, 2023)
Post-Earnings Price$185.55Open (Nov 1, 2023)
Price Change
$-14.85(-7.41%)
- Bull Case for CDW based on the Q&A section of the Earnings Call:*
- CDW continues to gain market share, outperforming the market by more than their long-term target of 200 to 300 basis points, with customer spend through CDW showing a delta of more than 5%.
- Strong double-digit growth in cloud, security, and software solutions, reflecting demand for mission-critical technologies, positions CDW well to capitalize on this trend.
- Steeper-than-expected deterioration in international markets (U.K. and Canada), with performance down mid-teens and conditions worsening beyond anticipation. The company expects the weakness to persist for a couple more quarters, impacting international revenue growth.
- Continued weakness in commercial hardware spending, particularly in client devices, with hopes for a modest recovery unmet. Customers remain hesitant to make significant upfront capital investments, and there are no signs of improvement in client device demand, affecting hardware sales.
- Potential risks from federal government budget issues and possible shutdowns, which may lead to projects being put on hold, impacting future federal spending. This could affect the government's segment revenues in upcoming quarters, especially into 2024.