CDW Corp's first-quarter results miss on weak IT spending

CDW

01/05/2024 12:51

May 1 (Reuters) - CDW Corp  CDW.O  missed analysts'
estimates for first-quarter results on Wednesday, hurt by weak
demand for its IT solutions as customers cut back their
technology budgets, sending the company's shares down about 5.5%
before the bell.
    Businesses are keeping their spending on technology under
check and deferring large upgrades amid sticky inflation and
high interest rates.
    "First quarter IT market conditions were weaker than
expected ... caution, concern and complexity adversely impacting
customers' capital investment decisions and elongating customer
decision-making," CDW's Chief Financial Officer Albert Miralles
said.
    The company provides IT solutions such as cloud and
cybersecurity, and hardware products to enterprises and
government customers in the United States, UK, and Canada.
    CDW posted first-quarter net sales of $4.87 billion,
compared with analysts' estimates of $5 billion, according to
LSEG data.
    On an adjusted basis, the company earned $1.92 per share,
ahead of estimates of $2.15.
    CDW's gross profit margin for the quarter was 21.8%,
compared with 21.3% a year earlier.

 (Reporting by Priyanka G in Bengaluru; Editing by Shounak
Dasgupta)
 ((Priyanka.G@thomsonreuters.com))