2023-08-02 15:52:27 ET
CDW ( NASDAQ: CDW ) stock on Wednesday was among the top percentage gainers on the S&P 500 ( SP500 ), after the IT services provider reported quarterly results that easily topped estimates.
Shares of CDW were up 5% to $196.67 in late afternoon trading.
CDW earlier in the day announced Q2 adjusted earnings per share of $2.56 which beat expectations by 23 cents . Revenue came in at $5.63B and beat consensus by $250M .
The revenue beat was helped by a rise in sales in CDW's public segment - under which the company provides IT services to governments and healthcare and educational organizations.
Revenue did decline, however, by 8.5% Y/Y, primarily driven by a fall in sales in CDW's corporate and small business segments and its UK and Canadian operations.
"Economic uncertainty continued to weigh on the commercial market and both our corporate and small business results reflected ongoing cautious customer behavior, caution that once again drove elongated sales cycles, smaller deal sizes and greater focus on mission critical projects," CDW CEO Christine Leahy said on the earnings conference call .
"Continued postponement of upgrades and utilization of existing product resulted in a double digit decline in client devices," Leahy added.
CDW also declared a quarterly cash dividend of $0.59/share.
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CDW stock jumps 5% after co beats Q2 revenue estimate by $250M