INSIGHT ENTERPRISES Reports Fourth Quarter FY2022 Earnings Results on February 9 2023
February 20, 2023
Earnings Overview
On February 9 2023, INSIGHT ENTERPRISES ($NASDAQ:NSIT) released its financial results for the fourth quarter ending December 31 2022, showing total revenue of USD 77.5 million, a 24.7% rise year-over-year. Net income for the same period, however, dropped 2.5% to USD 2502.6 million compared to the fourth quarter of FY 2021.
Transcripts Simplified
In the fourth quarter, adjusted diluted earnings per share was $2.53, up 28% in constant currency and 25% in U.S. dollar terms, year-over-year. For the year, adjusted diluted earnings per share was $9.11, a record for INSIGHT ENTERPRISES. The company generated $304 million in cash flow from operations in the quarter, and for 2023 expects to generate cash flow from operations in the range of $180 million to $220 million. In the fourth quarter, INSIGHT ENTERPRISES repurchased 839,000 shares of their stock at an average price of $98.88 per share for a total cost of $83 million.
As of the end of January, they have $196 million remaining under their $300 million share repurchase authorization. Adjusted ROIC for the end of the year was 15.9%, an increase of 50 basis points over 2021. For 2023, they anticipate a modest growth year due to macroeconomic challenges.
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Insight Enterprises. More…
| Total Revenues | Net Income | Net Margin |
| 10.43k | 280.61 | 2.7% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Insight Enterprises. More…
| Operations | Investing | Financing |
| 98.11 | -137.84 | 114.01 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Insight Enterprises. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 5.11k | 3.47k | 46.54 |
Key Ratios Snapshot
Some of the financial key ratios for Insight Enterprises are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 10.5% | 17.7% | 4.0% |
| FCF Margin | ROE | ROA |
| 0.3% | 15.9% | 5.1% |
Price History
The company’s stock opened the day at $121.0, and after a positive day of trading, closed the day at $125.2. This 11.5% jump in stock price was the biggest increase seen since the company’s previous close of $112.3. The report showed that the fourth quarter had been a successful one for INSIGHT ENTERPRISES, resulting in increased profits and a subsequent rise in shareholder confidence and value of the data-driven solutions provider. This good news naturally led to a surge in buying activity which pushed the company’s stock to a new high.
Investors responded to the positive report by increasing their holdings in INSIGHT ENTERPRISES, with some analysts saying that the market was pricing in more good news from the company in coming quarters. With strong economic growth and higher demand for data-driven solutions from businesses, INSIGHT ENTERPRISES looks set to continue its success into the future. Live Quote…
Analysis
At GoodWhale, we analyze the financials of INSIGHT ENTERPRISES to help our clients make informed decisions. Our Risk Rating feature assesses the business, financial, and operational risks associated with investing in INSIGHT ENTERPRISES and concludes that it is a medium risk investment. We have also detected 1 risk warning in INSIGHT ENTERPRISES’ income sheet. If you’d like to learn more, please register on goodwhale.com to access our exclusive recommendations and analysis. We are confident that our insights will be invaluable to investors looking to gain a competitive edge in the market. More…
Peers
It offers a comprehensive range of services and solutions to help organizations of all sizes drive growth and efficiency. Its competitors include WNS (Holdings) Ltd, Deveron Corp, and Nagarro SE.
– WNS (Holdings) Ltd ($NYSE:WNS)
WNS (Holdings) Ltd is a provider of outsourced business process management services. The company has a market capitalization of $4 billion as of 2022 and a return on equity of 15.87%. WNS offers a range of services including finance and accounting, human resources, customer care, research and analytics, and supply chain management. The company serves clients in a variety of industries such as healthcare, banking and financial services, insurance, manufacturing, retail, and travel and hospitality.
– Deveron Corp ($TSXV:FARM)
Deveron Corp is a publicly traded company with a market cap of 65.41M as of 2022. The company has a Return on Equity of -25.12%. Deveron Corp is engaged in the business of providing software and services to the energy industry.
– Nagarro SE ($OTCPK:NGRRF)
Nagarro SE is a German software development company that specializes in enterprise software solutions. The company has a market capitalization of 1.3 billion euros as of 2022 and a return on equity of 37.18%. Nagarro SE provides software development and consulting services to large and medium-sized organizations in a variety of industries, including automotive, banking and financial services, consumer goods, healthcare, insurance, manufacturing, retail, telecommunications, and utilities.
Summary
INSIGHT ENTERPRISES reported strong revenue growth for the fourth quarter of FY2022, ending on December 31 2022. Revenue increased by 24.7% year-over-year to $77.5 million, however net income decreased by 2.5% over the same period to $2502.6 million. Despite the decrease in net income, traders reacted positively to the news, with INSIGHT ENTERPRISES’ stock price increasing on the same day. As such, investors will likely be pleased with INSIGHT ENTERPRISES’ financial performance during this quarter and may consider taking a position in the stock.
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