Thu, Oct 31, 6:05 PM (63 days ago)
Insight Enterprises, Inc. (NSIT) reported a decline in net sales for Q3 2024, totaling $2,087.9 million, an 8% decrease compared to Q3 2023. This decline was driven by reduced hardware and software sales, although services revenue increased. Gross profit rose 6% to $432.1 million, with gross margin expanding to 20.7%. Operating earnings increased slightly by 1% to $92.9 million, while net earnings fell to $58.2 million, reflecting a 6% year-over-year decline in diluted EPS to $1.52. The company indicated ongoing supply chain stabilization but noted a general slowdown in client decision-making. Cash flow from operations remained strong at $417.7 million, supporting acquisitions and share repurchases totaling $200 million. The debt balance as of September 30, 2024, was $1,086.8 million, primarily due to recent issuances of senior notes and convertible notes. The effective tax rate decreased to 22.5%, benefiting from research tax credits and adjustments related to acquisition earnouts. Despite current challenges, Insight anticipates sufficient liquidity to support operations and strategic initiatives moving forward.