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. • CDW reported net sales of […]
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IT solutions provider CDW’s shares fall on margin miss
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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.
• 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.
(Reporting by Harshita Mary Varghese in Bengaluru; Editing by Vijay Kishore)