CDW Beats Q2 Expectations

reported better-than-expected earnings for the second quarter on Monday. The Vernon Hills, Illinois-based company posted quarterly net income of $108.2 million, or $0.63 per share, compared to $86.6 million, or $0.50 per share, in the year-earlier quarter. Excluding one-time items, the company's earnings came in at $0.81 per share. Its revenue rose 6.7 percent year-ovre-year to $3.31 billion. However, analysts were expecting a profit of $0.70 per share on revenue of $3.24 billion. Average daily sales surged to $51.8 million in the second quarter, from $48.5 million, in the year-ago quarter. Total Corporate segment net sales gained 6.3 percent year-over-year to $1.76 billion, while Public segment net sales climbed 8.1 percent to $1.37 billion. Net sales for its Advanced Services business and Canadian operations rose slightly to $178.4 million in the second quarter, versus $178.2 million in the year-ago quarter. Gross profit margin widened to 16.1 percent from 16.0 percent. During the quarter, CDW repurchased a total of 2.5 million shares for $91.7 million. "Our strong topline and profitability performance in a challenging market was driven by the combined power of our balanced portfolio of channels and breadth of offerings, including our ability to bring newer, innovative technologies to our customers and the success of our three part strategy for growth," said Thomas E. Richards, chairman and chief executive officer of CDW. "This performance reinforces our confidence in our strategy and capital allocation actions, including today's dividend declaration and purchase of the remaining 65 percent of Kelway." CDW shares rose 1.38 percent to close at $35.93 on Friday.