CDW misses quarterly revenue estimates on slow hardware solutions demand
Technology
CDW misses quarterly revenue estimates on slow hardware solutions demand
(Reuters) - IT solutions provider CDW missed third-quarter revenue estimates on Wednesday due to reduced demand for its hardware solutions, as clients curtailed spending amid inflationary pressures, sending its shares down 7.2% in premarket trading.
The Vernon Hills, Illinois-based company said strong performance in its cloud and end-point solution services was offset by lower demand for hardware solutions.
CDW provides products and services ranging from hardware and software to integrated IT solutions such as security, cloud and hybrid infrastructure to business, government, education and healthcare customers in the US, the UK and Canada.
"Persistent economic uncertainty and growing complexity in the technology landscape resulted in elongated customer decision-making and delays in projects," CDW CFO Albert Miralles said.
The company reported net sales of $5.52 billion in the third quarter, missing analysts' estimate of $5.72 billion, according to data compiled by LSEG.
On an adjusted basis, it earned $2.63 per share, compared with an estimate of $2.85 per share.
Its gross profit margin for the quarter was 21.8%, flat on a year-over-year basis.
