Information technology product resellers and service providers CDW (CDW) on Wednesday narrowly beat Wall Street’s fourth-quarter profit target, but missed revenue. CDW stock fell in early trading.
X
The Vernon Hills, Illinois-based company had adjusted earnings of $2.57 per share on revenue of $5.02 billion in the December quarter. Analysts polled by FactSet had expected earnings of $2.56 per share and revenue of $5.32 billion. Year-over-year, CDW’s revenue increased by 3%, but sales decreased by 8%.
“Continued economic uncertainty has led our customers to focus on their business priorities, resulting in reduced or delayed hardware spending,” the company said in a news release. .
CDW provides multi-brand information technology solutions to corporate, government, education, and healthcare customers in the United States, United Kingdom, and Canada.
“As we head into 2024, we are well-positioned to continue our track record of outpacing U.S. IT market growth by 200-300 basis points in constant currency,” CEO Christine Leahy said in a written statement. ” he said.
CDW stock falls from all-time high
CDW stock fell 2.8% to 224 shares in pre-market trading today. On Friday, CDW stock hit an all-time high of 233.46 shares.
Corporate sales for the fourth quarter fell 8% to $2.29 billion. Public sector sales decreased 4.1% to $1.78 billion. Small business sales also fell 12.7% to $370 million.
CDW stock is featured on the IBD Tech Leaders list.
Follow Patrick Seitz on X (formerly Twitter). @IBD_PSeitz Check out more articles on consumer technology, software, and semiconductor stocks here.
You may also like:
Enterprise software company Intapp exceeds December quarter target
Spotify stock soars as music streamer exceeds subscriber expectations
Iconic inventory tanks as warehouse automation companies post inline results
Find winning stocks with MarketSmith pattern recognition and custom screens
See which stocks are close to buy points on the leader’s list