NASDAQ$NSIT

Insight Enterprises Inc · Q1 2020 earnings

Q1 2020 earnings · · Investor relations

Briefing

Insight Enterprises' financial performance increased due to the acquisition of PCM, Inc. and effective responses to the COVID-19 pandemic.

Insight Enterprises reported strong Q1 2020 results, with a 27% increase in net sales driven by the acquisition of PCM, Inc. Gross profit increased by 31%, and the company successfully deployed its workforce to work-from-home while supporting clients during the COVID-19 pandemic. The company withdrew its 2020 financial guidance due to the economic uncertainty caused by COVID-19.

  • Net sales increased 27% year over year to $2.14 billion, primarily due to the acquisition of PCM.
  • Gross profit increased 31% year over year to $325.3 million, with gross margin expanding 50 basis points.
  • Earnings from operations decreased 7% to $52.9 million, impacted by increased amortization and acquisition-related expenses.
  • Adjusted diluted earnings per share of $1.30 increased 11% year over year.

Headline financials

Total Revenue

$2.14B

Previous: $1.69B+27.2%
EPS (adj)

$1.30

Previous: $1.10+18.2%
Gross Margin

15.2%

Previous: 14.7%+3.4%
Capital Expenditures

-$7.38M

Previous: -$5.35M-37.9%
Free Cash Flow

$26.6M

Previous: $34M-21.8%
Net Income

$34M

Previous: $39.3M-13.6%
Operating Income

$52.9M

Previous: $57M-7.3%
Gross Profit

$325M

Previous: $248M+30.9%
Cash & Equivalents

$62.7M

Previous: $125M-49.8%
Total Assets

$4.06B

Previous: $2.76B+47.2%
Stock-Based Comp

$4.41M

Previous: $4.12M+7.1%

Revenue & EPS history

Insight Enterprises · Revenue · Quarterly

$2.14B

Q1 2020+27.2%vs Q1 2019
Beat estimate in 14 of 16 quarters(88%)
ActualEstimate

Revenue by segment

Insight Enterprises · $1.85B total across 1 segment · Q1 2020

  • Hardware
    $1.85B

Forward guidance

Insight Enterprises withdrew its 2020 financial guidance for net sales and Adjusted diluted earnings per share due to the high level of economic uncertainty and disruption caused by COVID-19. Demand for products and services is anticipated to decrease significantly in the short term as business and consumer activity declines globally.

Headwinds

  • High level of economic uncertainty due to COVID-19.
  • Disruption caused by COVID-19.
  • Anticipate demand for our products and services will decrease significantly in the short term.
  • Business activity declines globally.
  • Consumer activity declines globally.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q1 2020

Historical avgQ1 2020

-0.1%

Avg return

Earnings day

+2.0%

Avg return

5 days after

+4.0%

Avg return

30 days after

46%

30 / 65 earnings

Positive

+18.1%

Q4 2016

Best reaction

-19.1%

Q2 2024

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026-0.8%+26.0%+60.9%
Q4 2025+0.8%+15.5%+4.1%
Q3 2025-3.9%-8.4%-16.5%
Q1 2025-3.2%-4.8%-5.7%
Q4 2024-3.8%-3.7%-10.2%
Q3 2024-15.5%-16.6%-23.3%
Q2 2024-19.1%-19.6%-3.3%
Q1 2024+11.8%+15.5%+12.9%
Q4 2023-6.8%-5.2%-3.5%
Q3 2023+2.3%+1.4%+10.4%
Q2 2023-2.2%-1.3%+9.2%
Q1 2023+1.7%+2.6%+10.9%
Q4 2022+12.6%+12.5%+19.6%
Q3 2022+0.3%+3.0%+9.0%
Q2 2022-1.2%-3.7%-6.1%
Q1 2022-0.8%-4.2%-2.7%
Q4 2021-1.2%+0.2%+7.5%
Q3 2021+7.3%+6.7%+1.8%
Q2 2021-2.2%-3.5%+1.1%
Q1 2021-1.5%-4.0%+3.4%
Q4 2020+0.4%-0.7%+14.4%
Q3 2020+11.1%+16.9%+28.0%
Q2 2020+6.3%+9.4%+12.3%
Q1 2020+0.9%-9.3%+4.9%
Q4 2019-10.9%-12.3%-39.1%
Q3 2019-2.8%-4.2%+1.0%
Q2 2019+3.5%+6.4%-1.9%
Q1 2019+1.6%+1.6%-9.0%
Q4 2018+13.1%+16.2%+17.5%
Q3 2018-9.6%-10.2%-15.6%
Q2 2018-2.8%+4.2%+9.7%
Q1 2018+13.1%+21.6%+34.4%
Q4 2017+4.5%+3.5%+4.0%
Q3 2017-7.3%-12.6%-16.9%
Q2 2017+12.3%+8.1%-2.9%
Q1 2017+10.0%+9.8%+2.9%
Q4 2016+18.1%+18.6%+12.6%
Q3 2016-11.1%-13.6%+3.5%
Q2 2016+14.7%+17.2%+17.5%
Q1 2016-15.1%
Q4 2015-4.6%
Q3 2015-5.7%
Q2 2015-3.6%
Q1 2015-7.9%
Q4 2014+1.4%
Q3 2014-12.1%
Q2 2014-0.5%
Q1 2014+7.2%
Q4 2013+10.7%
Q3 2013-2.0%
Q2 2013-5.2%
Q1 2013-4.2%
Q4 2012-3.9%
Q3 2012+2.6%
Q2 2012+8.7%
Q1 2011-14.5%
Q1 2012-10.2%
Q4 2009-1.1%
Q1 2010-1.1%
Q4 2011-1.1%
Q3 2010+4.8%
Q3 2011+4.8%
Q4 2010+2.2%
Q2 2010+2.2%
Q2 2011+2.2%

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