Insight Enterprises, Inc. (NASDAQ: NSIT) has released its financial results for the third quarter ended September 30, 2024. The company reported a 6% year-over-year increase in gross profit to $432.1 million, with gross margin expanding 270 basis points to 20.7%. Cloud gross profit grew by 33% year over year, and Insight core services gross profit increased by 14% year over year.
However, consolidated net earnings decreased by 3% to $58.2 million year over year. Adjusted earnings before interest, tax, depreciation and amortization (EBITDA) remained flat at $128.8 million year over year. Diluted earnings per share decreased by 6% year over year to $1.52, while adjusted diluted earnings per share decreased by 8% year over year to $2.19.
In the third quarter of 2024, net sales decreased by 8% year over year to $2.1 billion, with product net sales decreasing by 11% year over year, while services net sales increased by 10% year over year.
Regionally, net sales in North America decreased by 8% year over year to $1.7 billion, with product net sales decreasing by 11% year over year, and services net sales increasing by 9% year over year. Net sales in EMEA decreased by 12% year over year to $312.6 million, while net sales in APAC increased by 15% year over year to $58.7 million.
Excluding the effects of fluctuating foreign currency exchange rates, consolidated net sales also decreased by 8% year over year. Gross profit increased by 6% compared to the third quarter of 2023 to $432.1 million, with product gross profit decreasing by 3% year over year and services gross profit increasing by 13% year over year.
Consolidated earnings from operations increased by 1% compared to the third quarter of 2023 to $92.9 million, with earnings from operations in North America decreasing by 6% year over year, but increasing by more than 100% in EMEA year over year and by 31% in APAC year over year.
Adjusted earnings from operations were relatively flat compared to the third quarter of 2023 at $120.1 million, with adjusted earnings from operations in North America decreasing by 3% year over year, but increasing by 30% in EMEA year over year and by 30% in APAC year over year.
In terms of net earnings, the company reported $58.2 million for the third quarter of 2024, with diluted earnings per share at $1.52, down 6% year over year. Adjusted consolidated net earnings were $77.0 million, with adjusted diluted earnings per share at $2.19, down 8% year over year.
The company now expects adjusted diluted earnings per share for the full year 2024 to be between $9.40 and $9.70, with mid single-digit gross profit growth and a gross margin in the 19% to 20% range.
As a result of these announcements, the company's shares have moved -9.3% on the market, and are now trading at a price of $184.94. Check out the company's full 8-K submission here.
