CDWC: CDW’s Average Daily Sales Driven by Acquisition
After Dell reported a decline and Hewlett Packard, Ingram Micro and Tech Data all showed mid-single-digit gains, one might wonder whether CDW was taking market share after seeing this headline:
CDW’s Average Daily Sales Increase 14.2 Percent in February 2007: Financial News - Yahoo! Finance
CDW Corporation (NASDAQ:CDWC - News), a leading provider of technology products and services to business, government and education, today announced average daily sales for February 2007 were $28.018 million, an increase of 14.2 percent compared to average daily sales of $24.533 million for February 2006. Total sales for February 2007 were $560.4 million, an increase of 14.2 percent compared to total sales of $490.7 million for February 2006. There were 20 billing days in both February 2007 and February 2006.
But not so fast.
As previously announced, CDW completed the acquisition of Berbee Information Networks Corporation on October 11, 2006. February 2006 sales do not include Berbee sales, while February 2007 sales include Berbee sales. Excluding Berbee sales in February 2007, and therefore on a non-GAAP basis, CDW’s average daily sales for February 2007 were $26.080 million compared to average daily sales for February 2006 of $24.533 million and total sales for February 2007 were $521.6 million compared to total sales of $490.7 million for February 2006, both representing an increase of 6.3 percent.
Ah. Mid-single digit growth. Just what we’ve come to expect. Unfortunately our expectations don’t seem to be lining up with those of the market. The consensus growth rate is 14% for the next five years.
Like this article? Why not try out:
[…] Large Cap Watch List (Track at Marketocracy) member Oracle (ORCL - Annual Report) on Tuesday. Consensus = $0.23 on $4.3 billion revenue and next quarter = $0.34 on $5.53 billion. We think acquisitions will result in upside to estimates though organic growth may disappoint. […]
[…] CDWC: Apples to Apples, CDW’s Sales are Improving When CDW Corp. (CDWC) reported seemingly strong average daily sales growth we were quick to throw cold water on the report, noting that the difference was primarily due to acquisition and that in reality the sales were up mid-single digit. This month the news looks somewhat better. CDW Corporation, a leading provider of technology products and services to business, government and education, today announced average daily sales for March 2007 were $31.644 million, an increase of 24.6 percent compared to average daily sales of $25.392 million for March 2006. Total sales for March 2007 were $696.2 million, an increase of 19.2 percent compared to total sales of $584.0 million for March 2006. There were 22 billing days in March 2007 and 23 billing days in March 2006.As previously announced, CDW completed the acquisition of Berbee Information Networks Corporation on October 11, 2006. March 2006 sales do not include Berbee sales, while March 2007 sales include Berbee sales. Excluding Berbee sales in March 2007, and therefore on a non-GAAP basis, CDW’s average daily sales for March 2007 were $28.431 million, an increase of 12.0 percent compared to average daily sales for March 2006 of $25.392 million. Excluding Berbee sales in March 2007, and therefore on a non-GAAP basis, total sales for March 2007 were $625.5 million, an increase of 7.1 percent compared to total sales of $584.0 million for March 2006. There were 22 billing days in March 2007 and 23 billing days in March 2006. […]