CDW Corporation (NASDAQ:CDW) shares are trading lower after the company reported worse-than-expected third-quarter fiscal year 2024 financial results.

Net sales declined 2% year-over-year to $5.517 billion, missing the consensus of $5.719 billion.

Net sales from the Corporate segment declined 4.4% to $2.61 billion, and the Small Business segment decreased 1.2% to $380 million.

Total Public segment net sales fell 5.1% to $2.336 billion due to a decline in net sales to Government and Education customers of 12.3% and 4.5%, respectively.

Net sales for CDW's U.K. and Canadian operations rose 4.8% Y/Y to $640 million.

Average daily sales fell 3.5% Y/Y to $86.2 million. Gross margin remained flat at 21.8% in the quarter.

The adjusted operating margin was 9.7% (vs. 9.9% a year ago) in the quarter. Adjusted EPS of $2.63 missed the consensus of $2.85.

CDW held $946.7 million in cash and equivalents as of September.

Dividend Raised: CDW declared a quarterly cash dividend per share of $0.625, up 1% over last year's dividend, payable on Dec. 10, 2024 to all stockholders of record as of Nov. 25, 2024.

CFO Albert J. Miralles blamed project delays on "economic uncertainty" and a complex technology landscape.

Investors can gain exposure to the stock via Argent Mid Cap ETF (NASDAQ:AMID) and Professionally Managed Portfolios Congress SMid Growth ETF (NYSE:CSMD).

Price Action: CDW shares are down 9.99% at $197.93 at the last check Wednesday.

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