Information technology products reseller and services provider CDW on Wednesday beat estimates for earnings in the third quarter but sales were lighter than expected. CDW stock dipped on the news.
The Lincolnshire, Ill.-based company earned an adjusted $2.60 a share on sales of $6.22 billion in the September quarter. Analysts polled by FactSet expected CDW earnings of $2.52 a share on sales of $6.24 billion. On a year-over-year basis, CDW earnings rose 22% while sales climbed 17%.
"We delivered record net sales and profitability, once again demonstrating our ability to pivot to meet customers' evolving business needs," Chief Executive Christine Leahy said in a news release.
Also, CDW increased its quarterly cash dividend 18% to 59 cents a share.
CDW Stock Drops After Report
CDW provides multibrand IT solutions to business, government, education and health-care customers in the U.S., U.K. and Canada.
On the stock market today, CDW stock fell a fraction to 172.40. It was up for most of the day but reversed in a broad market sell-off.
CDW stock has been consolidating for the past 44 weeks with a buy point of 208.81, according to IBD MarketSmith charts. CDW stock has an IBD Composite Rating of 85 out of 99.
IBD's Composite Rating combines five separate proprietary ratings into one easy-to-use rating. The best growth stocks have a Composite Rating of 90 or better.
Follow Patrick Seitz on Twitter at @IBD_PSeitz for more stories on consumer technology, software and semiconductor stocks.
