CHICAGO - CDW Corporation (NASDAQ:CDW) reported third quarter earnings that fell short of analyst expectations, as persistent economic uncertainty and a complex technology landscape led to cautious customer spending. The company's shares dropped 4.5% following the announcement.
The multi-brand provider of information technology solutions reported adjusted earnings per share of $2.63 for the third quarter, missing the analyst estimate of $2.86. Revenue for the quarter came in at $5.52 billion, below the consensus estimate of $5.73 billion and down 2.0% YoY.
CDW's net sales decreased 3.5% on an average daily sales basis, driven by declines in the Public and Corporate segments. The company cited elongated customer decision-making and project delays as key factors impacting performance.
Christine A. Leahy, chair and chief executive officer of CDW, commented on the results: "While this performance delivered resilient margins that reinforce the integrity of our strategy, it was not enough to offset the impact of lower hardware solutions demand."
The Corporate segment saw net sales fall 4.4% to $2.16 billion, while the Public segment declined 5.1% to $2.34 billion. However, the company's UK and Canadian operations, reported as "Other," grew 4.8% to $640 million.
Despite the challenging market conditions, CDW maintained its gross profit margin at 21.8%. The company also announced a quarterly cash dividend of $0.625 per common share, payable on December 10, 2024.
Looking ahead, CDW remains focused on exceeding US IT market growth by 200 to 300 basis points on a constant currency basis, as it navigates the evolving business environment and helps customers address their critical IT needs.
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