IT solutions provider CDW's shares fall on margin miss
CDW•Quarterly revenue and profit beat estimates
- CDW reported net sales of $6.57 billion in the second quarter, beating estimates of $6.21 billion, according to data compiled by LSEG.
- Adjusted profit of $2.91 per share also topped estimates of $2.80.
- Enterprise technology spending has remained resilient as companies invest in AI infrastructure, cloud computing and data center upgrades, benefiting firms such as CDW.
- Gross profit margin for the quarter came in at 20.1%, below estimates of 21.2%, primarily due to a sales mix shift toward lower-margin hardware products.
- Revenue from its commercial segment, which includes financial and healthcare services, grew 9.2% in the quarter.
Shares fall after gross margin misses estimates
Aug. 5 (Reuters) - CDW reported second-quarter gross profit margin below Wall Street estimates on Wednesday, offsetting stronger-than-expected revenue and sending the IT solutions provider's shares down 14% in premarket trading.
The Vernon Hills, Illinois-based company also said its CFO Albert Miralles will retire from the role next year.
