CDW Q3 sales beat estimates on financial services segment
CDW•CDW Q3 net sales rose 17.7% to $6.75 billion, above the $6.22 billion consensus estimate. Adjusted EPS increased 20.4% to $3.26, beating the $2.98 estimate.
1. Quarterly results
CDW reported Q3 net sales of $6.75 billion, up 17.7% and above analyst expectations. Adjusted EPS rose 20.4% to $3.26, also beating expectations.
2. Demand and outlook
Commercial segment net sales increased 20.8%, with strong growth among Financial Services, Corporate and Healthcare customers. CDW cited demand led by data storage, servers and software, and expects to outpace US IT addressable market growth by 200-300 basis points. Gross profit margin declined due to product mix and lower margins in certain categories, while selling and administrative expenses rose.
