NASDAQ$NSIT

Insight Enterprises Inc · Q4 2022 earnings

Q4 2022 earnings · · Investor relations

Briefing

Insight Enterprises reported an outstanding fourth quarter, topping off record-setting financial results for the year 2022.

Insight Enterprises reported a 2% decrease in net sales for Q4 2022, but demonstrated strong growth in gross profit, earnings from operations, and diluted earnings per share. The company's gross profit increased by 9%, with gross margin expanding to a record 16.8%. Diluted earnings per share increased by 26% to $2.13, and adjusted diluted earnings per share increased by 25% to $2.53.

  • Gross profit increased 9% to $420.6 million, with gross margin expanding 180 basis points to a record 16.8%.
  • Earnings from operations increased 22% to $114.0 million.
  • Diluted earnings per share of $2.13 increased 26%.
  • Adjusted diluted earnings per share of $2.53 increased 25%.

Headline financials

Total Revenue

$2.5B

Previous: $2.57B-2.5%
EPS (adj)

$2.53

Previous: $2.03+24.6%
Gross Margin

16.8%

No prior period
Capital Expenditures

$11.7M

Previous: $24.1M-51.5%
Free Cash Flow

$292M

Previous: $257M+13.6%
Net Income

$77.5M

Previous: $62.1M+24.7%
Operating Income

$114M

Previous: $93.4M+22.1%
Gross Profit

$421M

Previous: $385M+9.3%
Cash & Equivalents

$164M

Previous: $104M+57.6%
Total Assets

$5.11B

Previous: $4.69B+9.0%
Stock-Based Comp

$6.19M

Previous: $4.25M+45.5%

Revenue & EPS history

Insight Enterprises · Revenue · Quarterly

$2.5B

Q4 2022-2.5%vs Q4 2021
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 to deliver gross profit growth in the high single digit range and Adjusted diluted earnings per share is expected to be between $9.90 and $10.10.

Tailwinds

  • Gross profit growth in the high single digit range
  • Adjusted diluted earnings per share is expected to be between $9.90 and $10.10.

Headwinds

  • interest expense between $48 and $52 million
  • an effective tax rate of 25% to 26% for the full year
  • capital expenditures of $55 to $60 million
  • an average share count for the full year of 34.3 million shares after an estimated completion of our planned share repurchases under our current authorization net of estimated dilution.

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 Q4 2022

Historical avgQ4 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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