CDW tops second-quarter results estimates, sees growth in US

CDW

02/08/2023 12:57

Aug 2 (Reuters) - IT solutions provider CDW Corp  CDW.O  beat
second-quarter revenue and profit estimates on Wednesday, as strength in its
biggest unit that caters to governments helped offset lower spending from
smaller businesses and corporates.
    The public segment — which caters to governments, including the U.S., and
non-profit healthcare organizations — reported a 2.3% rise in net sales during
the quarter, and was the only business to grow over the year earlier.
    CDW remains "well-positioned to attain our target of exceeding U.S. IT
market growth by 200 to 300 basis points on a constant currency basis", said
Chief Executive Officer Christine Leahy.
    As macroeconomic fears abate, the company is also relying on higher orders
and spending from healthcare and education sectors.
    CDW could also benefit from higher demand for hardware required to support
AI initiatives at its clients especially in the U.S, which accounts for more
than 90% of its revenue.
    The company, which provides IT solutions to tech giants such as IBM  IBM.N 
and Microsoft  MSFT.O , reported adjusted profit of $2.56 per share in the
quarter ended June 30. Analysts on average estimated $2.33 per share, according
to Refinitiv data.
    CDW's net sales were $5.63 billion, compared with analysts' expectations of
$5.38 billion.

 (Reporting by Akshita Toshniwal; Editing by Shilpi Majumdar)
 ((Akshita.Toshniwal@thomsonreuters.com;))