IT solutions integrator Insight Enterprises (NASDAQ: NSIT) will be reporting earnings this Thursday before market open. Here’s what investors should know.
Insight Enterprises beat analysts’ revenue expectations last quarter, reporting revenues of $2.40 billion, up 14.7% year on year. It was an incredible quarter for the company, with a beat of analysts’ EPS estimates and an impressive beat of analysts’ full-year EPS guidance estimates.
Is Insight Enterprises a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, the market is expecting Insight Enterprises’s revenue to grow 7% year on year, a reversal from the 4% decrease it recorded in the same quarter last year.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business will stay the course heading into earnings. Insight Enterprises has missed Wall Street’s revenue estimates multiple times over the last two years.
Looking at Insight Enterprises’s peers in the it distribution & solutions segment, some have already reported their Q3 results, giving us a hint as to what we can expect. Connection delivered year-on-year revenue growth of 23.3%, beating analysts’ expectations by 13%, and TD SYNNEX reported revenues up 37.7%, topping estimates by 13.5%. Connection traded down 1% following the results while TD SYNNEX was also down 8.6%.
Read our full analysis of Connection’s results here and TD SYNNEX’s results here.
Investors in the it distribution & solutions segment have had steady hands going into earnings, with share prices flat over the last month. Insight Enterprises is up 5% during the same time and is heading into earnings with an average analyst price target of $163.75 (compared to the current share price of $167.34).
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