The 10-second takeaway
For the quarter ended March 31 (Q1), Insight Enterprises missed estimates on revenues and missed estimates on earnings per share.
Compared to the prior-year quarter, revenue contracted. Non-GAAP earnings per share dropped significantly. GAAP earnings per share dropped significantly.
Margins dropped across the board.
Insight Enterprises booked revenue of $1.18 billion. The two analysts polled by S&P Capital IQ predicted a top line of $1.23 billion on the same basis. GAAP reported sales were 5.0% lower than the prior-year quarter's $1.24 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 $0.24. The two earnings estimates compiled by S&P Capital IQ averaged $0.37 per share. Non-GAAP EPS of $0.24 for Q1 were 37% lower than the prior-year quarter's $0.38 per share. GAAP EPS of $0.20 for Q1 were 49% lower than the prior-year quarter's $0.39 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%, 30 basis points worse than the prior-year quarter. Operating margin was 1.5%, 70 basis points worse than the prior-year quarter. Net margin was 0.8%, 60 basis points worse than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $1.50 billion. On the bottom line, the average EPS estimate is $0.73.
Next year's average estimate for revenue is $5.47 billion. The average EPS estimate is $2.27.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 105 members out of 115 rating the stock outperform, and 10 members rating it underperform. Among 37 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 37 give Insight Enterprises a green thumbs-up, and give it a red thumbs-down.
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