Information technology products reseller and services provider CDW on Wednesday beat estimates for earnings in the third quarter but came up short on sales. CDW stock fell on the news.
The Vernon Hills, Ill.-based company earned an adjusted $2.72 a share on sales of $5.63 billion in the September quarter. Analysts polled by FactSet had expected CDW earnings of $2.60 a share on sales of $5.85 billion. On a year-over-year basis, CDW earnings rose 4% while sales dropped 9%.
CDW provides multibrand information technology solutions to business, government, education and health-care customers in the U.S., U.K. and Canada.
Public sector sales rose 1.5% to $2.42 billion in the third quarter, boosted by health care and education customers. Meanwhile, corporate segment sales fell 12.3% to $2.23 billion.
CDW Stock Falls After Report
On the stock market today, CDW stock dropped 0.6% to close at 199.16.
"Through this ongoing period of economic uncertainty, customers continue to turn to CDW to address their mission-critical IT and operational needs across the full IT solutions stack and lifecycle," Chief Executive Christine Leahy said in a news release.
She added, "We remain well-positioned to attain our target of exceeding U.S. IT market growth by 200 to 300 basis points on a constant currency basis."
CDW stock ranks ninth out of 60 stocks in IBD's Computer-Tech Services industry group, according to IBD Stock Checkup. CDW stock has an IBD Composite Rating of 91 out of 99.
Further, CDW stock is on the IBD Tech Leaders list.
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