(Reuters) – CDW reported third-quarter revenue below estimates on Wednesday on lower demand for the company’s information technology solutions as customers struggling with high borrowing costs cut back spending and defer projects.
“Continued economic uncertainty has led customers to focus their business priorities, resulting in a reduction or delays in their technology spend,” the company said.
CDW, which has products ranging from notebooks to data center services, posted third-quarter net sales of $5.63 billion compared with analysts’ estimate of $5.86 billion, according to LSEG data.
The company, however, beat third-quarter profit estimates on the back of higher margins and reduced discretionary spending.
CDW posted adjusted earnings of $2.72 compared with analysts’ estimates of $2.60 per share.
The Vernon Hills, Illinois-based company reported lower sales from its corporate and small business segments and also at its UK and Canadian operations.
Its public unit was the only outlier, with healthcare and education customers driving sales up 1.5% compared to the year before.
Gross profit margin for the third quarter was 21.8% compared to 19.8% a year ago due to higher margin products like software services.
(Reporting by Harshita Mary Varghese; Editing by Tasim Zahid)
