NASDAQ$NSIT

Insight Enterprises Inc · Q4 2024 earnings

Q4 2024 earnings · · Investor relations

Briefing

Insight Enterprises reported a decrease in net sales but an increase in gross profit for the fourth quarter of 2024. The company's earnings were impacted by macroeconomic conditions, but strategic steps were taken forward with cloud solutions and Insight Core services.

Insight Enterprises reported a 7% decrease in net sales to $2.1 billion for Q4 2024, while gross profit increased by 1% to $439.6 million. Diluted earnings per share decreased by 59% to $0.99, and adjusted diluted earnings per share decreased by 11% to $2.66. The company focused on cloud solutions and Insight Core services amid macroeconomic challenges.

  • Gross profit increased 1% year over year with gross margin expanding 170 basis points to a record 21.2%.
  • Insight Core services gross profit increased 12% year over year.
  • Cloud gross profit grew 3% year over year.
  • Consolidated net earnings decreased 59% year to year.

Headline financials

Total Revenue

$2.07B

Previous: $2.24B-7.3%
EPS (adj)

$2.66

Previous: $2.98-10.7%
Gross Margin

21.2%

Previous: 19.5%+8.7%
Adjusted EBITDA

$141M

No prior period
Operating Margin

3.1%

No prior period
Adjusted Operating Margin

6.2%

No prior period
Product Sales Mix

55.0%

No prior period
Software Sales Mix

25.0%

No prior period
Services Sales Mix

20.0%

No prior period
Hardware Sales Mix

55.0%

No prior period
Capital Expenditures

-$14.4M

Previous: -$10.2M-41.5%
Net Income

$37M

Previous: $90.6M-59.2%
Operating Income

$64.7M

Previous: $132M-50.9%
Gross Profit

$440M

Previous: $436M+0.8%

Revenue & EPS history

Insight Enterprises · Revenue · Quarterly

$2.07B

Q4 2024-7.3%vs Q4 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 2025, Insight Enterprises expects Adjusted diluted earnings per share to be between $9.70 and $10.10. They anticipate low single-digits gross profit growth and a gross margin of approximately 20%.

Tailwinds

  • Adjusted diluted earnings per share to be between $9.70 and $10.10.
  • Expect to deliver low single-digits gross profit growth.
  • Expect that gross margin will continue to be approximately 20%.
  • Effective tax rate of approximately 25% to 26% for the full year.
  • Average share count for the full year of 32.9 million shares.

Headwinds

  • Interest expense of $70 to $75 million.
  • Capital expenditures of $35 to $40 million.
  • Excludes acquisition-related intangibles amortization expense of approximately $74.3 million.
  • Assumes no acquisition or integration related expenses.
  • Does not contemplate any impact of tariffs, and no significant change in our debt instruments, with the exception of the settlement of our Convertible Notes, and no significant change in 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 2024

Historical avgQ4 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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