CDW Beats Q4 Consensus Backed By End Markets, Product, Solutions Portfolio; Declares Dividend - CDW (NASDAQ:CDW)

CDW Corp CDW reported fourth-quarter FY21 net sales growth of 11.7% year-on-year to $5.54 billion, beating the consensus of $5.18 billion. Average daily sales rose 9.9% Y/Y to $87.9 million.
Net sales from the Total Corporate segment increased 33.1% Y/Y to $2.32 billion, and the Total Small Business segment rose 30.9% to $487 million.
Total Public segment net sales declined 13.1% to $2.03 billion. A decrease in net sales to Education customers by 9% and Government customers by 34.9% drove the decline. Net sales to Healthcare customers increased 19.9%.
Net sales for CDW's U.K. and Canadian operations, combined as "Other" for financial reporting purposes, grew 19.5% Y/Y to $699 million.
Margins: Gross margin remained flattish at 17.6%, driven by an increase in the mix of net service contract revenue, primarily Software as a Service, increase in Net sales and related margins on professional services, and the impact of Sirius' gross profit margin. The non-GAAP operating margin was flat at 7.7%.
Non-GAAP EPS of $2.08 beat the consensus of $1.92.
CDW held $258.1 million in cash and equivalents.
"Our strong fourth quarter and full-year performance demonstrated the power of our business model with balance across customer end markets and our product and solutions portfolio, and reinforced the strength of our strategy," said Christine A. Leahy, president, and chief executive officer, CDW.
Dividend: CDW board approved a quarterly cash dividend per share of $0.50 to be paid on March 10, 2022, to all stockholders of record as of the close of business on February 25, 2022.
Outlook: CDW expects to exceed its 2022 outlook to outpace U.S. I.T. market growth by 200 bps- 300 bps on a constant currency basis.
Price action: CDW shares traded 0.75% lower at $193.06 on Wednesday.

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