CDW Corp (CDW), a leading provider of IT solutions, witnessed a remarkable surge of 11.82% in its stock price on Wednesday, February 5, 2025. This significant upward movement can be attributed to the company's robust fourth-quarter 2024 financial performance, which exceeded analysts' expectations, driven by strong demand for its IT solutions.
According to the earnings report, CDW reported net sales of $5.19 billion, surpassing the consensus estimate of $4.93 billion. The company's adjusted earnings per share (EPS) stood at $2.48, outperforming the expected $2.32 per share. This impressive performance was fueled by businesses' continued investment in cloud-based services, cybersecurity, and hardware products, as well as CDW's growing contribution from its cloud and end-point services offerings.
Notably, CDW's corporate segment, which accounts for a substantial portion of its revenue, saw a 4.2% year-over-year increase in sales to $2.35 billion, beating estimates of $2.23 billion. The company's gross profit margin, however, declined slightly to 22.3%, compared to 23% in the previous year, due to changes in product mix and pricing pressures.
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