Blowout Results at CDW

The computer seller beats by 4 cents a share.
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Shares of



jumped Tuesdayafter the computer seller beat fiscal second-quarter earningsestimates by 4 pennies.

Shares of CDW were most recently up $1.85, or 3.2%, at $58.44.

Vernon Hills, Ill.-based CDW reported net income of $67.1 million,or 80 cents a share, in the second quarter, which ended in June. Thatcompared to net income of $58.3 million, or 67 cents a share, in thesame period a year earlier.

Analysts polled by Thomson First Call were expecting the companyto bring in earnings per share of 76 cents in the second quarter.

CDW, the world's largest direct marketer of technology products,said revenue rose 11.3% to $1.54 billion from $1.38 billion a yearearlier. That also beat the consensus estimate for sales of $1.52billion.

The company posted a 15% jump in unit volume in notebook CPUs,desktop CPUs, server CPUs, software, data storage and video.

June sales, meanwhile, climbed to $567.4 million from $493.2million in the year-earlier period. Average daily sales in June roseto $25.8 million from $22.42 million in June 2004. Average daily salesfor the entire June-ending quarter totaled $24.05 million, an increaseof 11.3% from $21.61 million in the year-earlier period.

Gross profit margin in the second quarter, however, droppedslightly to 15.4% from 15.5% a year earlier. The company blamed lowerdelivery charges, insurance and handling as a result of these chargesmade in the first quarter of 2005, as well as a lower level of vendorincentives as a percent of sales.