CDW (CDW 84.00, +0.11) is adding 0.1% after beating earnings expectations.
The distributor of technology solutions for businesses reported above-consensus second quarter earnings of $1.38 per share on a 7.6% year-over-year increase in revenue to $4.19 billion, which was just ahead of expectations.
Total Corporate segment net sales grew 9.7% year-over-year to $1.73 billion while Small Business segment sales increased 4.6% to $330 million.
Public segment net sales increased 0.2% to $1.64 billion due to 6.3% growth in sales to Healthcare customers and 1.0% growth in sales to Education customers, which was partially offset by a 5.7% decline in sales to Government customers.
Other sales jumped 34.0% to $487 million.
Gross margin improved by 100 basis points year-over-year to 16.6%. The improvement was driven by higher product margins due to the customer mix.
Long-term liabilities declined 5.4% year-over-year to $3.44 billion with debt falling 2.3% to $3.20 billion. Net leverage ratio declined to 2.5x from 2.8x one year ago.
CDW Chairman and CEO Thomas Richards noted that the company expects to exceed its annual target of outpacing the growth of the U.S. IT market by 200-300 basis points.