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Sep 30, 2023
Insight Enterprises Q3 2023 Earnings Report
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.
Key Takeaways
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.
Revenue by Segment
Revenue by Geographic Location
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.
Positive Outlook
- 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.
Challenges Ahead
- 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.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
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Avg. Return Before/After Earnings
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