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Bull of the Day: Insight Enterprises (NSIT)

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Insight Enterprises (NSIT - Free Report) is based in Arizona, and is a global direct marketer of brand name computers, hardware and software. The company markets to small- and medium-sized businesses, through a combination of a strong outbound telemarketing sales force, electronic commerce, electronic marketing and direct mail catalogs. 

Better-Than-Expected Q3 Earnings

Net sales grew 9% to $1.91 billion, and this increase is largely attributed to Insight’s acquisition of PCM back in August.

Adjusted diluted EPS rose 10% over the prior year to $1.10 per share, beating the Zacks Consensus Estimate. Gross profit increased 18% to $276.2 million, while gross margin saw a 100 basis point jump 10 14.4%.

North America sales also saw healthy growth in Q3, up 10% year-over-year to $1.52 billion. EMEA sales rose 3% year-over-year to $355.7 million, while APAC sales surged 34%.

Looking ahead, Insight now expects net sales to grow between 9% and 11% for full year 2019 (reflecting the PCM deal for the last four months of the year). Adjusted diluted EPS should fall in the range of $5.45 and $5.50 per share.

“Our differentiated solutions and disciplined operating model combined with PCM’s reach into the middle market will position us well to drive growth and deliver on our financial commitments as we head into 2020,” said CEO and president Ken Lamneck.

NSIT is Jumping


Shares of NSIT are up 70% since January compared to the S&P 500’s return of 32%. Earnings estimates have been rising too, and Insight is a Zacks Rank #1 (Strong Buy) right now.

For the current fiscal year, four analysts have revised their bottom line estimate upwards in the last 60 days, and the Zacks Consensus Estimate has moved up 50 cents from $4.96 to $5.46; earnings could see about 18% growth compared to the prior year period. 2020 looks pretty strong too, with earnings and revenue expected to continue positive year-over-year growth.

NSIT currently trades around 12.6X its forward full-year earnings estimates, lower than the broader Retail and Wholesale Market (17.3X).

If you’re an investor searching for a growing retail stock to add to your portfolio, make sure to keep NSIT on your shortlist.

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