CDW Misses Q2 Estimates Amid Challenging IT Spending Environment
Portfolio Pulse from Lekha Gupta
CDW Corporation (NASDAQ:CDW) reported worse-than-expected Q2 FY24 results, with net sales declining 3.6% Y/Y to $5.423 billion, missing the consensus of $5.425 billion. The challenging IT spending environment led to decreased sales across various segments. Despite a slight increase in gross margin, adjusted EPS of $2.50 missed the consensus of $2.53. CDW shares are down 5.73% following the report. Investors can gain exposure to CDW via SMI 3Fourteen Full-Cycle Trend ETF (NASDAQ:FCTE) and WBI BullBear Quality 3000 ETF (NYSE:WBIL).
July 31, 2024 | 4:51 pm
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NEGATIVE IMPACT
CDW Corporation reported worse-than-expected Q2 FY24 results, with net sales declining 3.6% Y/Y to $5.423 billion, missing the consensus of $5.425 billion. Adjusted EPS of $2.50 missed the consensus of $2.53. Shares are down 5.73% following the report.
CDW's worse-than-expected financial results and the challenging IT spending environment have led to a decline in share price. The miss on both net sales and adjusted EPS indicates potential short-term negative sentiment among investors.
CONFIDENCE 95
IMPORTANCE 90
RELEVANCE 100
NEGATIVE IMPACT
SMI 3Fourteen Full-Cycle Trend ETF (NASDAQ:FCTE) provides exposure to CDW. The ETF may experience short-term volatility due to CDW's disappointing Q2 FY24 results.
Given that FCTE provides exposure to CDW, the ETF may experience short-term volatility as a result of CDW's disappointing financial performance.
CONFIDENCE 80
IMPORTANCE 60
RELEVANCE 50
NEGATIVE IMPACT
WBI BullBear Quality 3000 ETF (NYSE:WBIL) provides exposure to CDW. The ETF may experience short-term volatility due to CDW's disappointing Q2 FY24 results.
Given that WBIL provides exposure to CDW, the ETF may experience short-term volatility as a result of CDW's disappointing financial performance.
CONFIDENCE 80
IMPORTANCE 60
RELEVANCE 50