NASDAQ$NSIT

Insight Enterprises Inc · Q1 2023 earnings

Q1 2023 earnings · · Investor relations

Briefing

Insight Enterprises' first quarter results were reported and full year guidance was confirmed.

Insight Enterprises reported first quarter results that were in line with expectations, with gross profit increasing 3% year over year and gross margin expanding 250 basis points to 16.8%. Diluted earnings per share decreased 12% year to year to $1.34.

  • Gross profit increased 3% year over year to $391.3 million with gross margin expanding 250 basis points to 16.8%.
  • Earnings from operations decreased 3% year to year to $77.5 million.
  • Adjusted earnings from operations increased 5% year over year to $94.0 million.
  • Diluted earnings per share of $1.34 decreased 12% year to year.

Headline financials

Total Revenue

$2.32B

Previous: $2.65B-12.3%
EPS (adj)

$1.78

Previous: $1.81-1.7%
Gross Margin

16.8%

Previous: 14.3%+17.5%
Capital Expenditures

-$9.11M

Previous: -$25.7M+64.6%
Free Cash Flow

$40.9M

Previous: $30.9M+32.3%
Net Income

$50M

Previous: $56.6M-11.8%
Operating Income

$77.5M

Previous: $79.8M-3.0%
Gross Profit

$391M

Previous: $379M+3.3%
Cash & Equivalents

$176M

Previous: $115M+53.1%
Total Assets

$4.96B

Previous: $4.85B+2.3%
Stock-Based Comp

$6.9M

Previous: $5.01M+37.7%

Revenue & EPS history

Insight Enterprises · Revenue · Quarterly

$2.32B

Q1 2023-12.3%vs Q1 2022
Beat estimate in 3 of 14 quarters(21%)
ActualEstimate

Revenue by segment

Insight Enterprises · $1.97B total across 1 segment · Q1 2023

  • Hardware
    $1.97B-14.8%

Forward guidance

For the full year 2023, the Company expects Adjusted diluted earnings per share to be between $9.90 and $10.10. We now expect to deliver gross profit growth in the mid single digit range.

Tailwinds

  • Adjusted diluted earnings per share to be between $9.90 and $10.10.
  • Gross profit growth in the mid single digit range.

Headwinds

  • interest expense of $46 to $50 million;
  • an effective tax rate of 25% to 26% for the full year;
  • capital expenditures of $55 to $60 million;
  • an average share count for the full year of 34.8 million shares including estimated potential dilution from the warrants relating to the Call Spread Transactions (as defined below), net of share repurchases completed in the first quarter and our planned future share repurchases under our current authorization.

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 2023

Historical avgQ1 2023

-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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