NSIT Earnings Prediction
The chart below shows how NSIT performed 10 days before and after its earnings report, based on data from the past quarters. Typically, NSIT sees a +4.94% change in stock price 10 days leading up to the earnings, and a +3.88% change 10 days following the report. On the earnings day itself, the stock moves by -2.73%. This data can give you a slight idea of what to expect for the next quarter's release.
NSIT Key Earning Data
2024/Q4
Year Over Year
Quarter Over Quarter
Total Revenue
2.09B
-7.87%
-3.41%
Gross Margin
20.69%
14.69%
-1.34%
Operating Margin
4.89%
11.90%
-22.38%
Net Margin
2.79%
4.89%
-31.11%
EPS
1.52
-6.17%
-33.04%
No Data Available
NSIT Earnings Analysis
Insight Enterprises Inc Corporation (NSIT.O) Earnings Conference Call
Positive
Cloud Profit Surge: 1. Cloud Gross Profit Growth: Insight Enterprises reported a 33% increase in cloud gross profit, driven by higher growth in Infrastructure-as-a-Service and Software-as-a-Service offerings.
Core Services Profit Growth: 2. Core Services Gross Profit Increase: The gross profit from Insight Core Services grew by 14%, reflecting the successful integration and performance of recent acquisitions.
Gross Margin Improvement: 3. Gross Margin Expansion: The company's gross margin expanded by 270 basis points to 20.7%, attributed to a favorable mix of cloud and core services.
Cash Flow Performance: 4. Strong Cash Flow Generation: Insight generated $125 million in cash flow from operations in Q3, with a year-to-date total of $418 million, exceeding the typical range of $300 million to $400 million.
Share Repurchase Initiative: 5. Share Repurchase Program: The company repurchased approximately $165 million of shares in Q3 and has a new $300 million share repurchase program authorized by the Board, enhancing shareholder value.
Negative
Revenue Decline Analysis: 1. Revenue Decline: Insight Enterprises reported a net revenue of $2.1 billion for Q3 2024, reflecting an 8% decrease in U.S. dollars and constant currency, primarily driven by an 11% decline in production.
Hardware Sales Decline: 2. Hardware Sales Drop: Hardware sales decreased by 13% year-over-year, with on-prem software down 9%, indicating significant weakness in large enterprise and corporate client segments.
Earnings Per Share Drop: 3. Earnings Per Share Decline: Adjusted diluted earnings per share fell to $2.19, down 8% year-over-year, attributed to increased interest expenses from higher debt related to acquisitions and share buybacks.
EBITDA Stability Amid Challenges: 4. Flat EBITDA: Adjusted EBITDA remained flat at $129 million year-over-year, despite a gross profit increase, highlighting challenges in overall profitability amid declining revenues.
Rising Debt Impact: 5. Increased Debt Levels: Total debt rose to $1.1 billion compared to $673 million a year ago, with associated interest expenses negatively impacting adjusted diluted earnings per share.
NSIT FAQs
How does NSIT typically perform around its earnings report dates?
Is Insight Enterprises, Inc. (NSIT) Q3 2024 Earnings Call Summary positive or negative?
How can historical earnings data help predict future stock performance?
NSIT Earning Call Sentiment
Insight Enterprises, Inc. (NSIT) Q3 2024 Earnings Call Transcript
1.0x
00:00
00:00
NSIT.O
-0.05%Positive
The earnings call reveals mixed signals: a decline in net revenue and EPS due to interest expenses, offset by strong gross profit and margin growth. The new $300 million share repurchase program is a positive, but market uncertainty and debt concerns weigh negatively. The Q&A indicates cautious optimism with growth in cloud services but challenges in enterprise resales and hardware. Given the balance of positive and negative factors, the stock price is likely to remain stable over the next two weeks, falling into the neutral category.
