Overview
- CDW shares fell about 20% to a 52-week low on Wednesday after the company reported mixed first-quarter results.
- The IT provider posted revenue of $5.68 billion that beat forecasts, and adjusted earnings of $2.28 per share that matched a Zacks consensus and were a penny shy of another estimate.
- Customer spending on artificial intelligence projects, cloud migration, and network security drove growth, with commercial sales up about 10% to $3.57 billion led by healthcare and finance.
- Profitability tightened as gross margin slipped to 21% from 21.6% and adjusted operating margin eased to 8% from 8.5% as costs rose for staff and AI initiatives.
- CDW said it expects to outpace U.S. IT market growth by 200 to 300 basis points on a constant-currency basis.