The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Insight Enterprises met expectations on revenues and missed estimates on earnings per share.
Compared to the prior-year quarter, revenue contracted slightly and GAAP earnings per share shrank significantly.
Gross margins increased, operating margins shrank, net margins contracted.
Insight Enterprises tallied revenue of $1.35 billion. The two analysts polled by S&P Capital IQ foresaw sales of $1.34 billion on the same basis. GAAP reported sales were the same as the prior-year quarter's.
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 $0.49. The two earnings estimates compiled by S&P Capital IQ predicted $0.57 per share. GAAP EPS of $0.46 for Q4 were 41% lower than the prior-year quarter's $0.78 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 13.4%, 20 basis points better than the prior-year quarter. Operating margin was 2.9%, 30 basis points worse than the prior-year quarter. Net margin was 1.5%, 100 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $1.22 billion. On the bottom line, the average EPS estimate is $0.38.
Next year's average estimate for revenue is $5.46 billion. The average EPS estimate is $2.29.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 108 members out of 118 rating the stock outperform, and 10 members rating it underperform. Among 45 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 44 give Insight Enterprises a green thumbs-up, and one give 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. The Motley Fool has no position in any of the stocks mentioned. 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.
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