Insight Enterprises Inc (NSIT, Financial) released its financial results for the third quarter ended September 30, 2023, on November 2, 2023. Despite an 11% decrease in net sales year over year, the company reported a 2% increase in gross profit, reaching $408.9 million. The gross margin expanded by 220 basis points to a third quarter record of 18.0%.
Financial Highlights
Insight Enterprises Inc (NSIT, Financial) reported earnings from operations of $91.9 million, a 2% increase compared to the same period in 2022. Adjusted earnings from operations also saw a 12% increase year over year, reaching $119.8 million. The company's diluted earnings per share of $1.62 increased by 3% year over year, while adjusted diluted earnings per share rose by 19% to $2.37.
Despite a decrease in net sales, the company's gross profit increased by 2% compared to the third quarter of 2022. This was driven by a 17% growth in Cloud gross profit and a 20% increase in Insight Core Services gross profit.
Performance by Region
Net sales in North America decreased by 11% year over year to $1.9 billion, while net sales in EMEA and APAC decreased by 7% each. Despite these decreases, gross profit increased in all regions, with a 15% increase in EMEA and a 3% increase in APAC.
CEO Commentary
Third quarter results met our expectations and delivered record third quarter Adjusted diluted earnings per share," stated Joyce Mullen, President and Chief Executive Officer. “We have continued to grow our cloud and services businesses, demonstrating the progress we are making to become the leading solutions integrator,” Mullen stated.
Outlook for 2023
For the full year 2023, Insight Enterprises Inc (NSIT, Financial) expects Adjusted diluted earnings per share to be between $9.40 and $9.60. The company now anticipates delivering gross profit growth in the low single-digit range.
These results demonstrate Insight Enterprises Inc (NSIT, Financial)'s ability to increase profitability despite a challenging market environment. The company's focus on expanding its cloud and services businesses has contributed to its financial performance and positions it well for future growth.
Explore the complete 8-K earnings release (here) from Insight Enterprises Inc for further details.
