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CDW misses Q2 revenue, profit estimates on weak demand for IT solutions
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CDW misses Q2 revenue, profit estimates on weak demand for IT solutions
Jul 31, 2024 7:17 AM

July 31 (Reuters) - CDW Corp ( CDW ) 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.

Shares of the Vernon hills, Illinois-based company fell 5.3%

in early trading.

Corporate clients are preferring to spend cautiously amid

the economic volatility 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.

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