Insight Enterprises Inc. (NASDAQ:NSIT) delivered a profit and missed Wall Street’s expectations, AND 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 38.46% to $0.24 in the quarter versus EPS of $0.39 in the year-earlier quarter.
Revenue: Decreased 5.03% to $1.18 billion from the year-earlier quarter.
Actual vs. Wall St. Expectations: Insight Enterprises Inc. reported adjusted EPS income of $0.24 per share. By that measure, the company missed the mean analyst estimate of $0.37. It missed the average revenue estimate of $1.23 billion.
Quoting Management: “In the first quarter, we saw additional weakness in demand for IT products by large enterprise clients in North America, which was partially offset by strong top-line growth in our EMEA and APAC segments. Additionally, we saw lower than expected gross margin performance in EMEA due to changes in business and client sales mix in the quarter and to changes in partner programs. We controlled our selling and administrative expenses; however, these expense savings did not offset the effect of lower sales volumes and gross margins, which led to earnings from operations performance below our expectations,” stated Ken Lamneck, President and Chief Executive Officer. “As we move forward in 2013, we will continue to invest in sales and technical resources in key markets in North America and EMEA, as we believe this is critical to our long-term success. We will also remain focused on managing controllable costs and expect improved operating leverage in the back half of 2013,” added Lamneck.
Key Stats (on next page)…
Revenue decreased 12.26% from $1.35 billion in the previous quarter. EPS decreased 47.83% from $0.46 in the previous quarter.
Looking Forward: Analysts have a more positive outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has risen from a profit of $0.68 to a profit $0.73. For the current year, the average estimate has moved up from a profit of $2.23 to a profit of $2.27 over the last ninety days.
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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)