IT solutions provider CDW's shares fall on margin miss

Aug 5 (Reuters) - ‌CDW reported ​second-quarter ​gross profit margin below Wall Street estimates on Wednesday, ‌offsetting stronger-than-expected revenue and sending the ⁠IT solutions provider's shares down 14% in ‌premarket trading.

The Vernon Hills, ‌Illinois-based company also said its CFO Albert Miralles will retire from ​the role next year.

• CDW reported net sales of $6.57 billion ⁠in the second quarter, beating estimates of $6.21 billion, according ​to data compiled by LSEG.

• Adjusted profit of $2.91 per share ​also topped estimates of $2.80.

• ‌Enterprise technology spending has remained resilient as companies invest ⁠in AI infrastructure, cloud computing and data center upgrades, benefiting firms such as ⁠CDW.

• Gross profit margin for the quarter ​came in at 20.1%, below estimates of 21.2%, primarily due to a sales mix ‌shift toward lower-margin hardware products.

• Revenue from its commercial ‌segment, which includes financial and healthcare ⁠services, grew 9.2% ‌in the ​quarter.

(Reporting by Harshita Mary Varghese in Bengaluru; Editing by Vijay ‌Kishore)

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