NASDAQ$NSIT

Insight Enterprises Inc · Q1 2024 earnings

Q1 2024 earnings · · Investor relations

Briefing

Reported record first quarter results driven by strong performance in cloud and Insight Core services and disciplined expense management.

Insight Enterprises reported a record-setting first quarter with a 2% increase in net sales year-over-year, reaching $2.4 billion. Gross profit increased by 13% to $440.9 million, and diluted earnings per share increased by 30% to $1.74. Adjusted diluted earnings per share was $2.37, a 33% increase year-over-year.

  • Gross profit increased 13% year over year to a record $440.9 million, with gross margin expanding 170 basis points to a first quarter record 18.5%.
  • Insight Core services gross profit grew 24% year over year.
  • Cloud gross profit grew 33% year over year.
  • Diluted earnings per share of $1.74 increased 30% year over year.

Headline financials

Total Revenue

$2.38B

Previous: $2.32B+2.4%
EPS

$1.74

Previous: $1.78-2.2%
Gross Margin

18.5%

Previous: 16.8%+10.1%
Adjusted EBITDA

$132M

No prior period
Operating Margin

4.2%

No prior period
Adjusted Operating Margin

5.1%

No prior period
Capital Expenditures

-$6.48M

Previous: -$9.11M+28.8%
Free Cash Flow

$60.5M

Previous: $40.9M+48.2%
Net Income

$67M

Previous: $50M+34.1%
Operating Income

$100M

Previous: $77.5M+29.1%
Gross Profit

$441M

Previous: $391M+12.7%
Cash & Equivalents

$379M

Previous: $176M+115.7%
Total Assets

$6.57B

Previous: $4.96B+32.4%
Stock-Based Comp

$8.04M

Previous: $6.9M+16.6%

Revenue & EPS history

Insight Enterprises · Revenue · Quarterly

$2.38B

Q1 2024+2.4%vs Q1 2023
Beat estimate in 3 of 14 quarters(21%)
ActualEstimate

Revenue by segment

Insight Enterprises · $2.39B total across 2 segments · Q3 2023

  • Hardware
    $1.89B-12.9%
  • Software
    $501M

Forward guidance

For the full year 2024, the Company now expects Adjusted diluted earnings per share to be between $10.60 and $10.90. We expect to deliver gross profit growth in the mid to high teens and expect that our gross margin will be approximately 19%.

Tailwinds

  • Adjusted diluted earnings per share to be between $10.60 and $10.90.
  • Gross profit growth in the mid to high teens.
  • Gross margin will be approximately 19%.
  • Interest expense of $52 to $54 million.
  • Capital expenditures of $50 to $55 million.

Headwinds

  • An effective tax rate of 26% for the full year.
  • Acquisition-related intangibles amortization expense of approximately $60 million
  • Assumes no acquisition or integration related expenses
  • Transformation or severance and restructuring expenses, net and no significant change in our debt instruments or the macroeconomic environment.
  • Inability to reasonably estimate the impact of expenses to net earnings, diluted earnings per share and selling and administrative expenses.

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 2024

Historical avgQ1 2024

-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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