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.