The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Insight Enterprises missed estimates on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue increased and GAAP earnings per share improved significantly.
Gross margins were steady, operating margins improved, net margins increased.
Insight Enterprises logged revenue of $1.24 billion. The three analysts polled by S&P Capital IQ expected to see revenue of $1.31 billion on the same basis. GAAP reported sales were 3.8% higher than the prior-year quarter's $1.31 billion.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
Non-GAAP EPS came in at $0.39. The one earnings estimate compiled by S&P Capital IQ forecast $0.37 per share on the same basis. GAAP EPS of $0.78 for Q3 were 47% higher than the prior-year quarter's $0.53 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 13.2%, about the same as the prior-year quarter. Operating margin was 3.2%, 20 basis points better than the prior-year quarter. Net margin was 2.5%, 60 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $1.37 billion. On the bottom line, the average EPS estimate is $0.49.
Next year's average estimate for revenue is $5.34 billion. The average EPS estimate is $1.98.
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 103 members out of 111 rating the stock outperform, and eight members rating it underperform. Among 43 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 42 give Insight Enterprises a green thumbs-up, and one gives it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Insight Enterprises is hold, with an average price target of $20.00.
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Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.