CDW Corp. (CDW) shares tumbled around 11% on October 30, 2024, after the leading multi-brand information technology solutions provider reported weaker-than-expected revenue for the third quarter of 2024.

The company's Q3 2024 revenue of $5.517 billion fell short of analysts' consensus estimate of $5.719 billion, representing a 2% year-over-year decline. CDW attributed the revenue 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 revenue, 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.

Looking ahead, CDW remains focused on addressing its customers' mission-critical IT and operational needs across the full IT solutions stack and lifecycle. The company aims to exceed US IT market growth by 200 to 300 basis points on a constant currency basis, leveraging its value proposition as customers navigate the evolving technology landscape.