CDW Corp. (CDW) shares tumbled around 6% in pre-market trading on October 30, 2024, after the leading multi-brand information technology solutions provider reported weaker-than-expected Q3 earnings results.

The company's Q3 2024 adjusted earnings per share of $2.63 missed analysts' estimates of $2.85, while revenue of $5.517 billion fell short of the consensus estimate of $5.719 billion. Revenue also declined by 2% year-over-year.

CDW attributed the earnings miss primarily to persistent economic uncertainty and a complex technology landscape, which led customers to be cautious and measured in their technology spending. This resulted in a decline in net sales, particularly in the Corporate and Public segments.

While the company's cloud and end-point solutions performed well, lower hardware solutions demand could not be offset, impacting overall revenue. CDW's Chief Financial Officer, Albert J. Miralles, stated, "Despite the challenging market, our ability to optimize cash flow generation through effective management of our working capital provides strategic flexibility across our capital priorities including M&A and share repurchases."

Despite the weaker-than-expected results, CDW's gross profit margin remained consistent at 21.8% for both Q3 2024 and Q3 2023, reinforcing the integrity of its strategy. The company also raised its quarterly cash dividend by 1% to $0.625 per share, highlighting its commitment to delivering value to stockholders.