NASDAQ$NSIT

Insight Enterprises Inc · Q2 2024 earnings

Q2 2024 earnings · · Investor relations

Briefing

Second quarter results reported with gross profit increase and expanded gross margin.

Insight Enterprises reported a decrease in net sales by 8% year-over-year but achieved a 5% increase in gross profit and an expansion of gross margin by 260 basis points. The company's strategy focusing on cloud and services contributed to double-digit growth in cloud and Insight Core services gross profit.

  • Gross profit increased 5% year over year to $453.4 million with gross margin expanding 260 basis points to 21.0%.
  • Insight Core services gross profit grew 12% year over year.
  • Cloud gross profit grew 21% year over year.
  • Consolidated net earnings grew 9% to $87.4 million, year over year.

Headline financials

Total Revenue

$2.16B

Previous: $2.35B-8.0%
EPS

$2.27

Previous: $2.56-11.3%
Gross Margin

21.0%

Previous: 18.4%+14.1%
Adjusted EBITDA

$141M

No prior period
Operating Margin

6.1%

No prior period
Adjusted Operating Margin

6.1%

No prior period
Product Sales Mix

79.9%

No prior period
Software Sales Mix

26.0%

No prior period
Services Sales Mix

20.1%

No prior period
Hardware Sales Mix

54.0%

No prior period
Capital Expenditures

-$18.6M

Previous: -$13.2M-41.2%
Free Cash Flow

$68.8M

Previous: $67.3M+2.3%
Net Income

$87.4M

Previous: $80.5M+8.7%
Operating Income

$131M

Previous: $119M+10.5%
Gross Profit

$453M

Previous: $433M+4.7%
Cash & Equivalents

$256M

Previous: $196M+30.8%
Total Assets

$7.35B

Previous: $5.54B+32.7%
Stock-Based Comp

$8.86M

Previous: $9.77M-9.3%

Revenue & EPS history

Insight Enterprises · Revenue · Quarterly

$2.16B

Q2 2024-8%vs Q2 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 expects Adjusted diluted earnings per share to be between $10.60 and $10.90. We expect to deliver low double digit gross profit growth and expect that our gross margin will be in the 19% to 20% range.

Tailwinds

  • Adjusted diluted earnings per share to be between $10.60 and $10.90.
  • Deliver low double digit gross profit growth.
  • Gross margin will be in the 19% to 20% range.
  • Interest expense of $60 to $62 million.
  • Effective tax rate of 26% for the full year.

Headwinds

  • Assumes no acquisition or integration related expenses.
  • Excludes acquisition-related intangibles amortization expense of approximately $69 million.
  • Assumes no transformation or severance and restructuring expenses, net and no significant change in our debt instruments or the macroeconomic environment.
  • Due to the inherent difficulty of forecasting some of these types of expenses, which impact net earnings, diluted earnings per share and selling and administrative expenses, the Company is unable to reasonably estimate the impact of such expenses, if any, to net earnings, diluted earnings per share and selling and administrative expenses.
  • The Company is unable to provide a reconciliation of GAAP to non-GAAP diluted earnings per share for the full year 2024 forecast.

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 2024

Historical avgQ2 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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