Information technology products reseller and service provider CDW on Wednesday smashed Wall Street's targets for the first quarter, thanks to large gains in corporate sales. CDW stock rose on the news.
The Lincolnshire, Ill.-based company earned an adjusted $2.20 a share on sales of $5.95 billion in the March quarter. Analysts polled by FactSet expected CDW earnings of $2.01 a share on sales of $5.67 billion. On a year-over-year basis, CDW earnings rose 27% while sales climbed 23%.
"Our first-quarter results once again highlight the strength of our business model and the combined power of our diverse customer end markets and broad product and solutions portfolio," Chief Executive Christine Leahy said in a news release.
She added, "We expect to exceed our initial 2022 outlook to outpace U.S. IT market growth by 200 to 300 basis points on a constant currency basis."
CDW Stock Ranks Fifth In Group
Strong corporate sales fueled CDW's first-quarter results. Revenue from corporate customers jumped 45.5% to $2.63 billion in the March quarter. Public sector sales — including government, education and health care — rose 6% to $2.03 billion. And small business sales increased 21% to $524 million.
On the stock market today, CDW stock jumped 5.6% to close at 177.11.
CDW provides multibrand IT solutions to business, government, education and health-care customers in the U.S., U.K. and Canada.
CDW stock ranks fifth out of 53 stocks in IBD's Computer-Tech Services industry group, according to IBD Stock Checkup. It has an IBD Composite Rating of 82 out of 99. IBD's Composite Rating is a blend of key fundamental and technical metrics to help investors gauge a stock's strengths. The best growth stocks have a Composite Rating of 90 or better.
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