CDW Lowers 4Q Forecast

Business began to slow in mid-November, leading the Vernon Hills-based direct marketer to cut its revenue forecast to $1.03 billion to $1.05 billion for the quarter. Previously, CDW expected sales of between $1.07 billion and $1.09 billion. The new guidance would represent a 4 percent to 6 percent increase over the year-ago quarter.

CDW expects earnings per share of between 50 cents and 52 cents for the fourth quarter, a 6 percent to 10 percent increase over the same period last year.

"We continue to anticipate strong financial performance this quarter," Chairman and CEO John Edwardson said. "Gross margins continue to be healthy, and we expect our earnings per share to be in line with our original guidance."

Shares of CDW were trading at $45.17 Wednesday morning, down $1.87 per share, or 4 percent.

CDW is the latest channel company to lower its fourth-quarter forecast. Earlier this week, distributor Ingram Micro lowered its revenue expectations, while Tech Data did the same in late November.