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Jun 30, 2023
Insight Enterprises Q2 2023 Earnings Report
Insight Enterprises' financial performance was marked by a decrease in net sales and earnings, offset by gross margin expansion and growth in key service areas.
Key Takeaways
Insight Enterprises reported a decrease in net sales by 14% year-over-year, with a corresponding decrease in earnings from operations by 8%. However, the company achieved a record gross margin of 18.4%, driven by growth in Insight Core Services and Cloud gross profit. Adjusted diluted earnings per share decreased by 8% year-over-year.
Gross profit decreased 1% year-over-year, but gross margin expanded 240 basis points to a record 18.4%.
Insight Core Services gross profit grew 7% and Cloud gross profit grew 12%.
Earnings from operations decreased 8% year-over-year.
Diluted earnings per share decreased 10% year-over-year.
Revenue by Geographic Location
Forward Guidance
For the full year 2023, the Company now expects Adjusted diluted earnings per share to be between $9.40 and $9.60 and expects to deliver gross profit growth in the low to mid single digit range.
Positive Outlook
- interest expense of $46 to $48 million
- an effective tax rate of 26% for the full year
- capital expenditures of $45 to $50 million
- an average share count for the full year of 34.8 million shares including estimated potential dilution from the warrants relating to the Call Spread Transactions (as defined below), net of share repurchases completed in the first six months of 2023.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
Analyze how earnings announcements historically affect stock price performance
Avg. Return Before/After Earnings
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