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Acquire or Evolve: What Insight and CDW’s Q2 Earnings Prove About the Industry
Last week, Insight Enterprises (Nasdaq:NSIT) and CDW (Nasdaq:CDW) announced earnings for the second quarter ending June 30. Both companies posted record results — Insight reported net sales of $1.68 billion for the second fiscal quarter, up 16 percent from last year’s $1.46 billion, while CDW reported net sales of $4.0 billion for the second quarter, up 9 percent from last year’s $3.66 billion.
While the growth is higher than what we are used to seeing in the industry, martinwolf President Marty Wolf analyzes why both companies have been well-positioned to succeed in his latest article on LinkedIn. Looking at Insight and CDW’s current strategic plays, Marty argues that their focus on making smart acquisitions and developing technical expertise in emerging markets have differentiated them from the pack.
Insight’s Datalink acquisition (martinwolf advised Insight in the transaction), which closed in January, added $124 million in sales to the company’s second quarter revenue totals. Conversely, CDW’s organic growth, especially in its standout converged infrastructure business that saw more than 50 percent growth in the second quarter, gave the company a boost in an emerging market. Consequently, Marty argues that for other companies to not get left behind, they must find success by achieving one of two crucial objectives.
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