Shares of CDW Corporation tumbled more than 13% by Wednesday afternoon after the company warned its first-quarter sales numbers will fall short of Street expectations.
The information technology services company said Tuesday morning that its sales for the quarter are expected to be around $5.1 billion — short of the $5.4 billion expected on average by analysts.
"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," CEO Christine Leahy said in a statement. "This demand contraction resulted in first-quarter performance below our expectations.”
Specifically, the decline in volume was felt most significantly among CDW’s largest customers, Leahy said.
CDW will report its official results on May 3. For the moment, its stock traded 13% lower Wednesday afternoon at $164.92.
Meanwhile, analysts at Credit Suisse lowered their price target for CDW to $195 from $230. The firm maintained an ‘Outperform’ rating.
Contact Andrew Kessel at andrew.kessel@proactiveinvestors.com
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