CDW misses third-quarter revenue estimates as customers lower tech spending

CDW

01/11/2023 13:16

Nov 1 (Reuters) - CDW  CDW.O  reported third-quarter
revenue below estimates on Wednesday on lower demand for the
company's information technology solutions as customers
struggling with high borrowing costs cut back spending and defer
projects.
    "Continued economic uncertainty has led customers to focus
their business priorities, resulting in a reduction or delays in
their technology spend," the company said.
    CDW, which has products ranging from notebooks to data
center services, posted third-quarter net sales of $5.63 billion
compared with analysts' estimate of $5.86 billion, according to
LSEG data.
    The company, however, beat third-quarter profit estimates on
the back of higher margins and reduced discretionary spending. 
    CDW posted adjusted earnings of $2.72 compared with
analysts' estimates of $2.60 per share.
    The Vernon Hills, Illinois-based company reported lower
sales from its corporate and small business segments and also at
its UK and Canadian operations. 
    Its public unit was the only outlier, with healthcare and
education customers driving sales up 1.5% compared to the year
before. 
    Gross profit margin for the third quarter was 21.8% compared
to 19.8% a year ago due to higher margin products like software
services.


        
        
  
        
  
    
    

 (Reporting by Harshita Mary Varghese; Editing by Tasim Zahid)
 ((HarshitaMary.Varghese@thomsonreuters.com;))