Boston, MA 05/13/2014 (wallstreetpr) – CDW Corp (NASDAQ:CDW) is a provider of technology solutions targeting government, education and healthcare markets. The company recently reported 1Q financial results that demolished a year earlier performance on all fronts. In addition to encouraging top-line and bottom-line growth, the company also managed to significantly reduce its debt position in the quarter. The quarter also saw the company declare cash reward for the shareholders in the form of dividend.
The company has made it clear that its goal is driving satisfaction for its customers and shareholders. As such, the company continues to enrich its product portfolio while attracting higher revenue and reducing costs and expenses to create shareholder value.
The latest quarter and the plans that the management have for the future suggest that CDW Corp (NASDAQ:CDW) is worth giving significant attention as an investment opportunity. Though positive things have been noted on the stock already, all those are just the tip of the iceberg.
Shareholder reward
First off, CDW Corp (NASDAQ:CDW) declared a cash reward of $0.0425 per share in the form of dividend. The dividend captures shareholders of record as of May 27 and will be paid on June 10. With continued costs and expenses reduction coupled with debt elimination, the company expects to strengthen its balance sheet to the point of being able to offer consistent dividend hikes in addition to shares repurchase to return bigger value to the shareholders.
Executive comment
According to CDW Corp (NASDAQ:CDW) CEO Thomas E. Richards, the company continues to invest for the future to ensure sustainable revenue stream and long-term efficiency. The CEO also said the company seeks to eliminate its debts to achieve a strong balance sheet. The company paid down $75 million in debt in 1Q and ended the quarter will $668 million less debt than in the same quarter a year earlier.
1Q2014 highlight
The latest quarter leaves no doubt about the improving conditions at CDW Corp (NASDAQ:CDW). The company did not only exceed Wall Street expectation for 1Q, but also breached a year earlier figures. Revenue in the latest quarter was $2.56 billion, up from $2.41 billion a year earlier and topped $2.57 billion that analysts projected. Net income was up 80 percent to hit $50.9 million, compared with $28.3 million in the year earlier quarter. EPS came in at 30 cents, up 53 percent from 19 cents a year earlier.
