CDW stock drops on weaker-than-expected revenue as business spending tightens
CDW Corp. (CDW) shares dropped in the extended session Tuesday after the IT software provider forecast revenue below the Wall Street consensus because of tight business spending. CDW shares fell 9% after hours, following a 0.7% rise to close the regular session at $190.29. "The first quarter was marked by a period of intensifying economic uncertainty that led our customers to spend more cautiously and prioritize mission critical initiatives," said Christine Leahy, CDW chair and chief executive, said in a statement. "This demand contraction resulted in first-quarter performance below our expectations," Leahy said. "Volume declines were most acute with our largest commercial customers and across transactional products." The company said it expects the U.S. IT market to contract by a high single-digit rate in 2023, and first-quarter revenue of about $5.1 billion. Analysts surveyed by FactSet, however, were looking for $5.58 billion. Weakness in business spending doesn't bode well for International Business Machines Corp. (IBM), which now derives three-quarters of its revenue from services, and reports its earnings after the bell Wednesday
-Wallace Witkowski
This content was created by MarketWatch, which is operated by Dow Jones & Co. MarketWatch is published independently from Dow Jones Newswires and The Wall Street Journal.
(END) Dow Jones Newswires
04-18-23 1708ET
Copyright (c) 2023 Dow Jones & Company, Inc.-
Can the Fed Declare Victory on Inflation?
-
After Earnings, Is Coinbase Stock a Buy, a Sell, or Fairly Valued?
-
After Earnings, Is Albemarle Stock a Buy, a Sell, or Fairly Valued?
-
Is ServiceNow Stock a Buy After Earnings and Its Investor Day?
-
3 Stocks to Buy and 3 Stocks to Sell After Earnings
-
Markets Brief: Is It Really a Surprising Quarter for Earnings?
-
After Earnings, Is Berkshire Hathaway Stock a Buy, a Sell, or Fairly Valued?
-
For Bond Investors, Delayed Rate Cuts Demand a Different Playbook
-
Today’s Market Volatility Could Provide Tomorrow’s Opportunities
-
40 of the Best Investment Picks
-
Tech Stock Dividends Are Changing the Face of Dividend Growth Investing
-
Roblox Earnings: Weakening Engagement Has Weighed On Growth
-
The Best Gaming Stocks to Buy
-
Energy Transfer Earnings: M&A Drives Guidance Increase In Solid Quarter
-
The Best Healthcare Stocks to Buy
-
Going Into Earnings, Is Home Depot Stock a Buy, a Sell, or Fairly Valued?