Information technology products reseller and services provider CDW on Wednesday narrowly beat Wall Street's earnings target for the fourth quarter but came up short on sales. CDW stock rose after the report.
The Vernon Hills, Ill.-based company earned an adjusted $2.57 a share on sales of $5.02 billion in the December quarter. Analysts polled by FactSet had expected earnings of $2.56 a share on sales of $5.32 billion. On a year-over-year basis, CDW earnings rose 3% while sales declined 8%.
"Continued economic uncertainty has led customers to focus their business priorities, resulting in a reduction or delays in their hardware spend," the company said in a news release.
CDW provides multibrand information technology solutions to business, government, education and health-care customers in the U.S., U.K. and Canada.
"Looking ahead to 2024, we remain well-positioned to continue our track record of outpacing the U.S. IT market growth by 200 to 300 basis points on a constant currency basis," Chief Executive Christine Leahy said in a written statement.
CDW Stock Hits Record High
In other news, CDW announced a $750 million increase to its share repurchase authorization.
CDW stock dropped in premarket trading after the earnings news release. But shares surged higher after the opening bell.
On the stock market today, CDW stock rose 3.1% to close at 237.60. Earlier in the session, CDW shares notched a record high of 247.63.
In the fourth quarter, CDW's corporate sales fell 8% to $2.29 billion. Public sector sales slid 4.1% to $1.78 billion. And small business sales dropped 12.7% to $370 million.
CDW stock is on the IBD Tech Leaders list.
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