NASDAQ$NSIT

Insight Enterprises Inc · Q4 2023 earnings

Q4 2023 earnings · · Investor relations

Briefing

Insight Enterprises reported strong execution leading to record gross margin for the fourth quarter and full year.

Insight Enterprises reported a decrease in net sales by 11% year-over-year, but gross profit increased by 4% and earnings from operations increased by 16%. Diluted earnings per share increased 14% year-over-year.

  • Gross profit increased 4% year over year to $436.2 million with gross margin expanding 270 basis points to a record 19.5%.
  • Insight Core Services gross profit grew 7% year over year.
  • Cloud gross profit grew 43% year over year.
  • Diluted earnings per share of $2.42 increased 14% year over year.

Headline financials

Total Revenue

$2.24B

Previous: $2.5B-10.7%
EPS (adj)

$2.98

Previous: $2.53+17.8%
Gross Margin

19.5%

Previous: 16.8%+16.1%
Capital Expenditures

-$10.2M

Previous: $11.7M-187.3%
Net Income

$90.6M

Previous: $77.5M+16.9%
Operating Income

$132M

Previous: $114M+15.7%
Gross Profit

$436M

Previous: $421M+3.7%
Stock-Based Comp

$2.74M

Previous: $6.19M-55.7%

Revenue & EPS history

Insight Enterprises · Revenue · Quarterly

$2.24B

Q4 2023-10.7%vs Q4 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 2024, the Company expects Adjusted diluted earnings per share to be between $10.50 and $10.80. We expect to deliver gross profit growth in the mid to high teens and expect that our gross margin will be approximately 19%. We expect that operating expenses will grow at a higher rate than gross profit.

Tailwinds

  • Adjusted diluted earnings per share to be between $10.50 and $10.80.
  • Gross profit growth in the mid to high teens
  • Gross margin will be approximately 19%
  • Interest expense of $40 to $42 million
  • Capital expenditures of $50 to $55 million

Headwinds

  • Operating expenses will grow at a higher rate than gross profit.
  • Effective tax rate of 26% for the full year
  • Excludes acquisition-related intangibles amortization expense of approximately $60 million
  • Assumes no acquisition or integration related expenses
  • Assumes no transformation or severance and restructuring expenses, net and no significant change in our debt instruments or the macroeconomic environment.

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 2023

Historical avgQ4 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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