Information technology products reseller and service provider CDW early Wednesday topped Wall Street's earnings target for the second quarter but missed views on sales. CDW stock rose on the company's upbeat full-year guidance.
The Lincolnshire, Ill.-based company earned an adjusted $2.49 a share on sales of $6.15 billion in the June quarter. Analysts polled by FactSet expected CDW earnings of $2.42 a share on sales of $6.18 billion. On a year-over-year basis, CDW earnings rose 23% while sales increased 19%.
CDW provides multibrand IT solutions to business, government, education and health-care customers in the U.S., U.K. and Canada.
CDW's second-quarter results were driven by strong corporate sales, which rose 34% to $2.66 billion. Public sector sales increased 7.8% to $2.24 billion. And small business sales inched 3.5% higher to $500 million.
CDW Stock Rises After Report
On the stock market today, CDW stock advanced 0.9% to close at 181.96. On Tuesday, CDW stock dipped 0.7% to close at 180.33.
"Customers turn to CDW as a trusted advisor with the breadth, depth, expertise and scale to deliver business-enhancing outcomes across the full technology stack and lifecycle," Chief Executive Christine Leahy said in a news release.
She added, "We expect to exceed our initial 2022 outlook to outpace U.S. IT market growth by 200 to 300 basis points on a constant currency basis."
Put another way, 200 to 300 basis points is the equivalent of 2 to 3 percentage points.
CDW stock is on IBD's Tech Leaders list and Big Cap 20 stock list.
IBD Stock Checkup ranks CDW stock first out of 57 stocks in IBD's Computer-Tech Services industry group. It has an IBD Composite Rating of 97 out of 99. IBD's Composite Rating is a blend of key fundamental and technical metrics to help investors gauge a stock's strengths. The best growth stocks have a Composite Rating of 90 or better.
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