(Reuters) – 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.
Corporate clients are preferring to spend cautiously 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% from a year earlier to $2.2 billion and also missed analysts’ estimates of $2.26 billion.
(Reporting by Priyanka.G in Bengaluru; Editing by Krishna Chandra Eluri)
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