NASDAQ$NSIT

Insight Enterprises Inc · Q2 2023 earnings

Q2 2023 earnings · · Investor relations

Briefing

Insight Enterprises' financial performance was marked by a decrease in net sales and earnings, offset by gross margin expansion and growth in key service areas.

Insight Enterprises reported a decrease in net sales by 14% year-over-year, with a corresponding decrease in earnings from operations by 8%. However, the company achieved a record gross margin of 18.4%, driven by growth in Insight Core Services and Cloud gross profit. Adjusted diluted earnings per share decreased by 8% year-over-year.

  • Gross profit decreased 1% year-over-year, but gross margin expanded 240 basis points to a record 18.4%.
  • Insight Core Services gross profit grew 7% and Cloud gross profit grew 12%.
  • Earnings from operations decreased 8% year-over-year.
  • Diluted earnings per share decreased 10% year-over-year.

Headline financials

Total Revenue

$2.35B

Previous: $2.74B-14.4%
EPS (adj)

$2.56

Previous: $2.78-7.9%
Gross Margin

18.4%

Previous: 16.0%+15.0%
Capital Expenditures

-$13.2M

Previous: -$47.3M+72.1%
Free Cash Flow

$67.3M

Previous: $41.9M+60.5%
Net Income

$80.5M

Previous: $89.2M-9.8%
Operating Income

$119M

Previous: $130M-8.4%
Gross Profit

$433M

Previous: $438M-1.1%
Cash & Equivalents

$196M

Previous: $138M+42.5%
Total Assets

$5.54B

Previous: $5.6B-1.1%
Stock-Based Comp

$9.77M

Previous: $5.43M+80.0%

Revenue & EPS history

Insight Enterprises · Revenue · Quarterly

$2.35B

Q2 2023-14.4%vs Q2 2022
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 2023, the Company now expects Adjusted diluted earnings per share to be between $9.40 and $9.60 and expects to deliver gross profit growth in the low to mid single digit range.

Tailwinds

  • interest expense of $46 to $48 million
  • an effective tax rate of 26% for the full year
  • capital expenditures of $45 to $50 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 six months of 2023.

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 Q2 2023

Historical avgQ2 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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