CDW Corp (NASDAQ:CDW) reported a Q2 FY23 net sales decline of 8.5% Y/Y to $5.63 billion, beating the consensus of $5.40 billion. 

Average daily sales fell 8.5% Y/Y to $87.9 million. 

Net sales from the Total Corporate segment declined 15.6% Y/Y to $2.25 billion, and the Total Small Business segment decreased 20.8% Y/Y to $396 million.

Total Public segment net sales grew 2.3% Y/Y to $2.30 billion, led by an increase in net sales to Government customers by 11.8% Y/Y.

Net sales for CDW's U.K. and Canadian operations, combined as "Other" for financial reporting purposes, fell 7.0% Y/Y to $690 million.

Margins: Gross margin expanded to 21.0% from 19.0% a year ago, aided by higher product margin on the lower mix in notebooks, increased rate across various categories, and a favorable mix of netted down revenue (mainly within software as a service).

The non-GAAP operating margin was around 9.4% vs. 8.4% a year ago.

Non-GAAP EPS of $2.56 beat the consensus of $2.35. 

CDW held $203.9 million in cash and equivalents as of June 30, 2023.

Price Action: CDW shares are trading higher by 6.66% at $199.80 on the last check Wednesday.