NASDAQ$NSIT

Insight Enterprises Inc · Q3 2023 earnings

Q3 2023 earnings · · Investor relations

Briefing

Insight Enterprises' Q3 2023 financial performance was reported, marked by a decrease in net sales but an increase in gross profit and adjusted diluted earnings per share.

Insight Enterprises reported a decrease in net sales by 11% year-over-year for Q3 2023, but gross profit increased by 2%. Adjusted diluted earnings per share increased by 19% year-over-year, reaching a record $2.37. The company confirmed its full-year 2023 guidance for adjusted diluted earnings per share to be in the range of $9.40 to $9.60.

  • Gross profit increased 2% year-over-year to $408.9 million, with gross margin expanding 220 basis points to 18.0%.
  • Insight Core Services gross profit grew 20% and Cloud gross profit grew 17%.
  • Adjusted diluted earnings per share of $2.37 increased 19% year-over-year.
  • Cash flows provided by operating activities were $225.8 million for the three months ended September 30, 2023.

Headline financials

Total Revenue

$2.27B

Previous: $2.53B-10.6%
EPS (adj)

$2.37

Previous: $1.99+19.1%
Gross Margin

18.0%

Previous: 15.8%+13.9%
Capital Expenditures

-$29.1M

Previous: -$59.3M+51.0%
Free Cash Flow

$31.2M

Previous: -$1.95M+1695.5%
Net Income

$60.2M

Previous: $57.3M+5.1%
Operating Income

$91.9M

Previous: $90.3M+1.8%
Gross Profit

$409M

Previous: $399M+2.4%
Cash & Equivalents

$244M

Previous: $137M+78.8%
Total Assets

$5.08B

Previous: $5B+1.6%
Stock-Based Comp

$9.55M

Previous: $6.09M+56.8%

Revenue & EPS history

Insight Enterprises · Revenue · Quarterly

$2.27B

Q3 2023-10.6%vs Q3 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 expects Adjusted diluted earnings per share to be between $9.40 and $9.60 and now expects to deliver gross profit growth in the low single digit range.

Tailwinds

  • Adjusted diluted earnings per share to be between $9.40 and $9.60.
  • Gross profit growth in the low single digit range.
  • Interest expense of $45 to $47 million.
  • Capital expenditures of $40 to $45 million.
  • Average share count for the full year of 34.8 million shares.

Headwinds

  • Effective tax rate of 25% to 26% for the full year.
  • Excludes acquisition-related intangibles amortization expense of approximately $34 million.
  • Assumes no acquisition or integration related expenses.
  • Assumes no transformation or severance and restructuring expenses, net.
  • Assumes 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 2023

Historical avgQ3 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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