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Insight (NSIT) Gears Up for Q2 Earnings: What's in Store?

Zacks Equity Research

Insight Enterprises, Inc. NSIT is scheduled to release fourth-quarter 2019 results on Feb 12.

The Zacks Consensus Estimate for fourth-quarter earnings is pegged at $1.61, which declined 2.4% over the past 30 days. Notably, the figure indicates an improvement of almost 22% from the prior-year quarter.

For revenues, the consensus mark stands at $2.37 billion, suggesting growth of 35.3% from the year-ago reported figure.

The company has beat estimates in the trailing four quarters, the average being 12.52%.

Factors Likely to Have Influenced Q4 Results

Insight’s fourth-quarter top-line is likely to reflect robust adoption of its cloud and data center transformation, and digital innovation solutions amid increasing spend on digital transformation by enterprises.

Insight Enterprises, Inc. Price and EPS Surprise

Insight Enterprises, Inc. Price and EPS Surprise

Insight Enterprises, Inc. price-eps-surprise | Insight Enterprises, Inc. Quote

Moreover, growing clout of supply chain optimization solutions and connected workforce offerings on the back of ongoing automation in business processes is expected to have driven the fourth-quarter performance.

Further, the company is well poised to gain from PCM acquisition and expand operations in North America and EMEA. Notably, the addition of PCM complements Insight’s supply chain optimization solution, which is expected to have contributed to the fourth-quarter revenues.

However, increasing spend on strengthening e-commerce platform, and expenses pertaining to integration of PCM acquisition and investment in real estate, in the quarter under review, is likely to have weighed on margin expansion.

What Our Model Says

Our proven model does not conclusively predict an earnings beat for Insight this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that’s not the case here.

Although, Insight has an Earnings ESP of +0.62%, the company carries a Zacks Rank #4 (Sell). You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Stocks to Consider

Here are a few stocks that you may consider, as our proven model shows that these have the right combination of elements to post an earnings beat this quarter.

Alteryx, Inc. AYX has an Earnings ESP of +6.49% and a Zacks Rank #1. You can see  the complete list of today’s Zacks #1 Rank stocks here.

Applied Materials, Inc. AMAT has an Earnings ESP of +2.89% and a Zacks Rank of 1.

CEVA, Inc. CEVA has an Earnings ESP of +27.06% and a Zacks Rank of 1.

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