NASDAQ$NSIT

Insight Enterprises Inc · Q3 2022 earnings

Q3 2022 earnings · · Investor relations

Briefing

Insight Enterprises reported solid results driven by double-digit gross profit growth and continued strength in cloud solutions.

Insight Enterprises, Inc. reported a 4% increase in net sales, a 10% increase in gross profit, and a 9% increase in earnings from operations compared to the third quarter of 2021. Diluted earnings per share increased by 5% year over year to $1.58, and adjusted diluted earnings per share increased by 6% year over year to $1.99.

  • Gross profit increased 10% year over year to $399.3 million.
  • Earnings from operations increased 9% year over year to $90.3 million.
  • Adjusted earnings from operations increased 14% year over year to $107.1 million.
  • Diluted earnings per share of $1.58 increased 5% year over year.

Headline financials

Total Revenue

$2.53B

Previous: $2.45B+3.5%
EPS (adj)

$1.99

Previous: $1.87+6.4%
Gross Margin

15.8%

Previous: 14.9%+6.0%
Capital Expenditures

-$59.3M

Previous: -$28M-111.6%
Free Cash Flow

-$1.95M

Previous: $27.5M-107.1%
Net Income

$57.3M

Previous: $55.5M+3.3%
Operating Income

$90.3M

Previous: $83.2M+8.6%
Gross Profit

$399M

Previous: $365M+9.5%
Cash & Equivalents

$137M

Previous: $107M+27.3%
Total Assets

$5B

Previous: $4.44B+12.7%
Stock-Based Comp

$6.09M

Previous: $4.58M+33.1%

Revenue & EPS history

Insight Enterprises · Revenue · Quarterly

$2.53B

Q3 2022+3.5%vs Q3 2021
Beat estimate in 3 of 14 quarters(21%)
ActualEstimate

Revenue by segment

Insight Enterprises · $2.17B total across 1 segment · Q3 2022

  • Hardware
    $2.17B

Forward guidance

For the full year 2022, the Company expects to deliver low double digit net sales growth and Adjusted diluted earnings per share is expected to be between $8.65 and $8.75.

Tailwinds

  • Expects to deliver low double digit net sales growth
  • Adjusted diluted earnings per share is expected to be between $8.65 and $8.75
  • Assumes interest expense between $35 and $40 million
  • Assumes an effective tax rate of 25% to 26% for the full year 2022
  • Capital expenditures of $65 to $70 million

Headwinds

  • This outlook assumes interest expense between $35 and $40 million.
  • This outlook assumes an effective tax rate of 25% to 26% for the full year 2022.
  • This outlook assumes capital expenditures of $65 to $70 million.
  • This outlook assumes an average share count for the full year of 35.1 to 35.2 million shares after an estimated partial completion of our planned repurchase under our current authorization.
  • This outlook excludes acquisition-related intangibles amortization expense of approximately $33 million, assumes no acquisition or integration related, transformation or severance and restructuring expenses, and no significant change in our debt instruments.

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 Q3 2022

Historical avgQ3 2022

-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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