Insight Enterprises Inc. (NASDAQ:NSIT) delivered a profit and beat Wall Street’s expectations, BUT came up short on beating the revenue expectation. The revenue miss is a negative sign to shareholders seeking high growth out of the company.
Insight Enterprises Inc. Earnings Cheat Sheet
Results: Adjusted Earnings Per Share decreased 21.52% to $0.62 in the quarter versus EPS of $0.79 in the year-earlier quarter.
Revenue: Decreased 7.37% to $1.42 billion from the year-earlier quarter.
Actual vs. Wall St. Expectations: Insight Enterprises Inc. reported adjusted EPS income of $0.62 per share. By that measure, the company beat the mean analyst estimate of $0.61. It missed the average revenue estimate of $1.44 billion.
Quoting Management: “During the second quarter, we continued to see soft top line performance, but we drove gross margin expansion through higher services sales and a strategic focus on more profitable product sales. We also maintained strict discipline around the costs in our business,” stated Ken Lamneck, President and Chief Executive Officer. “We are continuing to focus on growing our solutions-selling expertise around key technologies and in select markets and verticals and believe that this will bring value to our clients and shareholders over time,” added Lamneck.
Key Stats (on next page)…
Revenue increased 19.88% from $1.18 billion in the previous quarter. EPS increased 210% from $0.20 in the previous quarter.
Looking Forward: Analysts have a neutral outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings is a profit of $0.36 and has not changed. For the current year, the average estimate is a profit of $1.88, which is the same with that ninety days ago.
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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)