CDW misses quarterly revenue estimates on slow hardware solutions demand (updated)

CDW

30/10/2024 14:01

(Updates share move in paragraph 1)
       Oct 30 (Reuters) - IT solutions provider CDW  CDW.O 
missed third-quarter revenue estimates on Wednesday due to
reduced demand for its hardware solutions, as clients curtailed
spending amid inflationary pressures, sending its shares down
7.3%.
    The Vernon Hills, Illinois-based company said strong
performance in its cloud and end-point solution services was
offset by lower demand for hardware solutions. 
    CDW provides products and services ranging from hardware and
software to integrated IT solutions such as security, cloud and
hybrid infrastructure to business, government, education and
healthcare customers in the U.S., the UK and Canada.
    "Persistent economic uncertainty and growing complexity in
the technology landscape resulted in elongated customer decision
making and delays in projects," CDW CFO Albert Miralles said. 
    The company reported net sales of $5.52 billion in the
third-quarter, missing analysts' estimate of $5.72 billion,
according to data compiled by LSEG.
    On an adjusted basis, it earned $2.63 per share, compared
with an estimate of $2.85 per share. 
    Its gross profit margin for the quarter was 21.8%, flat on a
year-over-year basis.

 (Reporting by Harshita Mary Varghese in Bengaluru; Editing by
Pooja Desai)
 ((HarshitaMary.Varghese@thomsonreuters.com;))