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VERNON HILLS, Ill. - CDW Corporation (NASDAQ:CDW) reported fourth quarter earnings and revenue that exceeded analyst expectations, sending shares up 1.33% in early trading on Wednesday.
The multi-brand provider of information technology solutions posted adjusted earnings per share of $2.48, beating the consensus estimate of $2.33. Revenue for the quarter came in at $5.19 billion, surpassing expectations of $4.96 billion.
Net sales increased 3.3% YoY to $5.19 billion in Q4. On an average daily sales basis, net sales rose 5.0% compared to the same period last year.
"The team delivered a solid finish to a challenging year, demonstrating our clear commitment to our customers during this period of uneven market conditions," said Christine A. Leahy, chair and chief executive officer of CDW.
While economic uncertainty persisted, CDW saw signs of stability in several end-markets during the quarter. The Public segment led growth with net sales up 6.1% on an average daily basis, driven by a 29.5% increase in Healthcare customer sales.
Gross profit margin declined to 22.3% from 23.0% in Q4 2023, primarily due to an increased mix of notebook/mobile devices and desktop sales.
For the full year 2024, CDW reported net sales of $21.0 billion, down 1.8% from 2023. The company continues to target exceeding US IT market growth by 200 to 300 basis points in 2025.
CDW also announced a $750 million increase to its share repurchase authorization and a 1% hike in its quarterly dividend to $0.625 per share.
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