CDW misses Q2 revenue, profit estimates on weak demand for IT solutions
:CDW Corp reported second-quarter results below analysts' estimates on Wednesday, hurt by weak demand for its IT solutions as customers cut their budgets due to economic volatility.
Shares of the Vernon hills, Illinois-based company fell 5.3 per cent in early trading.
Corporate clients are preferring to spend cautiously amid the economic volatility while federal agencies have cut budgets, hurting companies such as CDW.
The company provides IT solutions such as cloud and cybersecurity, and hardware products to enterprises, government and healthcare customers in the United States, UK and Canada.
"During the quarter, economic uncertainty and increased technology complexity continued to weigh heavily on solutions spend," said Albert Miralles, CFO of CDW.
The company posted second-quarter net sales of $5.42 billion, missing analysts' estimates of $5.43 billion, according to LSEG data.
On an adjusted basis, the company earned $2.50 per share, compared with estimates of $2.53.
The company's corporate segment - largest contributor to revenue - fell 2.2 per cent from a year earlier to $2.2 billion and also missed analysts' estimates of $2.26 billion.
