On April 24, CDW (NASDAQ:CDWC) -- direct marketer of computers, peripherals, and IT support -- released first-quarter earnings for the period ended March 31.

  • Sales improved by 17%, but that includes results from the acquisition of Berbee Information Networks, completed on Oct. 11, 2006. Excluding Berbee, sales rose 8%.
  • Management says notebook computers, data storage, and software led to the strong showing.
  • The Motley Fool Stock Advisor recommendation carries a strong four-star rating in Motley Fool CAPS.

(Figures in millions, except per-share data.)

Income Statement Highlights

Q1 2007

Q1 2006

Change

Sales

$1,859.1

$1,588.6

17%

Net Profit

$76.8

$61.7

24.5%

EPS

$0.96

$0.75

28%

Diluted Shares

80.2

82.0

(2.1%)

Get back to basics with the income statement.

Margin Checkup

Q1 2007

Q1 2006

Change*

Gross Margin

16.2%

16%

0.2

Operating Margin

6.3%

5.9%

0.4

Net Margin

4.1%

3.9%

0.3

*Expressed in percentage points.

Margins are the earnings engine.

Balance Sheet Highlights

Assets

Q1 2007

Q1 2006

Change

Cash + ST Invest.

$480.2

$541.0

(11.2%)

Accounts Rec.

$835.3

$659.9

26.6%

Inventory

$283.0

$257.6

9.9%

Liabilities

Q1 2007

Q1 2006

Change

Accounts Payable

$392.2

$302.0

29.9%

       

The balance sheet reflects the company's health.

Cash Flow Highlights

No cash flow statement included in the earnings release? How shareholder-unfriendly.

Free cash flow is a Fool's best friend.

Related Foolishness:

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