The 10-second takeaway
For the quarter ended March 31 (Q1), Insight Enterprises met expectations on revenues and earnings per share.
Compared to the prior-year quarter, revenue expanded slightly and GAAP earnings per share grew significantly.
Margins expanded across the board.
Insight Enterprises reported revenue of $1.24 billion. The two analysts polled by S&P Capital IQ expected to see sales of $1.25 billion on the same basis. GAAP reported sales were 2.0% higher than the prior-year quarter's $1.22 billion.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $0.38. The two earnings estimates compiled by S&P Capital IQ predicted $0.38 per share. GAAP EPS of $0.39 for Q1 were 39% higher than the prior-year quarter's $0.28 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 13.7%, 40 basis points better than the prior-year quarter. Operating margin was 2.2%, 20 basis points better than the prior-year quarter. Net margin was 1.4%, 30 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $1.50 billion. On the bottom line, the average EPS estimate is $0.78.
Next year's average estimate for revenue is $5.58 billion. The average EPS estimate is $2.27.
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 110 members out of 119 rating the stock outperform, and nine members rating it underperform. Among 41 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 40 give Insight Enterprises a green thumbs-up, and one gives it a red thumbs-down.
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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.