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Dec 31, 2023
Insight Enterprises Q4 2023 Earnings Report
Insight Enterprises reported strong execution leading to record gross margin for the fourth quarter and full year.
Key Takeaways
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.
Revenue by Segment
Revenue by Geographic Location
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.
Positive Outlook
- 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
Challenges Ahead
- 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
Historical Earnings Impact
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Avg. Return Before/After Earnings
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