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IT solutions provider CDW's shares fall on margin miss
['Wed', 'August At Pm Gmt', 'Min Read']
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Aug 5 (Reuters) - CDW reported second-quarter gross profit margin below Wall Street estimates on Wednesday, offsetting stronger-than-expected revenue and sending the IT solutions provider's shares down 14% in premarket trading.
The Vernon Hills, Illinois-based company also said its CFO Albert Miralles will retire from the role next year.
• CDW reported net sales of $6.57 billion in the second quarter, beating estimates of $6.21 billion, according to data compiled by LSEG.
• Enterprise technology spending has remained resilient as companies invest in AI infrastructure, cloud computing and data center upgrades, benefiting firms such as CDW.
• Gross profit margin for the quarter came in at 20.1%, below estimates of 21.2%, primarily due to a sales mix shift toward lower-margin hardware products.