Information technology products seller and service provider CDW ( CDW ) topped Wall Street’s earnings target for the second quarter early Wednesday but missed sales views. CDW stock added to the company’s positive full-year guidance.
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Lincolnshire, Ill. The company earned $2.49 a share adjusted for 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. Year-over-year, CDW’s revenue increased 23 percent, while sales increased 19 percent.
CDW provides multi-product IT solutions to business, government, education and healthcare clients in the US, UK and Canada.
CDW’s second quarter results were driven by strong corporate sales, which rose 34% to $2.66 billion. Public sector sales rose 7.8 percent to $2.24 billion. And small business sales rose more than 3.5% to $500 million.
CDW’s stock rises after the report.
CDW shares gained 0.9% to close at 181.96 on the stock market today. On Tuesday, CDW stock fell 0.7% to close at 180.33.
“Clients turn to CDW as a trusted advisor with the breadth, depth, expertise and scale to deliver business-enhancing results across all technology stacks and lifecycles,” CEO Christine Leahy said in a news release.
She added, “From our original 2022 outlook, we expect to further increase US IT market growth by 200 to 300 basis points on a constant currency basis.
In other words, 200 to 300 basis points is equal to 2 to 3 percentage points.
CDW stock is on the IBD Tech Leaders list and the Big Cap 20 Stocks list.
IBD Stock Check ranks CDW stock first out of 57 stocks in IBD’s Computer-Tech Services industry group. IBD has a composite rating of 97 out of 99. The IBD Composite Rating is a combination of key fundamental and technical metrics that help investors gauge a stock’s strengths. The best growth stocks have a composite rating of 90 or higher.
Follow Patrick Seitz on Twitter @IBD_PSeitz For more stories on consumer technology, software and semiconductor stocks.
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