Benzinga | Feb 10, 2021 10:40AM EST

Earnings Preview: Insight Enterprises

Insight Enterprises (NASDAQ:NSIT) announces its next round of earnings this Thursday, February 11. Here is Benzinga's everything-that-matters guide for this Thursday's Q4 earnings announcement.

Net Income, Earnings, And Earnings Per Share

Earnings and EPS are useful metrics of profitability. Total earnings also known as net income is equal to total revenue minus total expenses. Dividing net income by the total number of shares outstanding yields EPS.

Earnings And Revenue

Insight Enterprises earnings will be near $1.5 per share on sales of $2.11 billion, according to analysts. In the same quarter last year, Insight Enterprises reported EPS of $1.57 on revenue of $2.30 billion.

What Are Analyst Estimates And Earnings Surprises, And Why Do They Matter?

Wall Street analysts who study this company will publish analyst estimates of revenue and EPS. The averages of all analyst EPS and revenue estimates are called the "consensus estimates"; these consensus estimates can have a significant effect on a company's performance during an earnings release. When a company posts earnings or revenue above or below a consensus estimate, it has posted an "earnings surprise", which can really move a stock depending on the difference between actual and estimated values.

If the company were to report earnings in line when it publishes results Thursday, quarterly profit would be down 4.46%. Sales would be down 8.14% on a year-over-year basis. Here is how the company's reported EPS has stacked up against analyst estimates in the past:

Quarter Q3 2020 Q2 2020 Q1 2020 Q4 2020EPS Estimate 1.13 1.01 1.08 1.61EPS Actual 1.38 1.75 1.30 1.57Revenue Estimate 2.02 B 1.98 B 2.14 B 2.37 BRevenue Actual 1.94 B 1.97 B 2.14 B 2.30 B

Stock Performance

Shares of Insight Enterprises were trading at $84.87 as of February 09. Over the last 52-week period, shares are up 42.36%. Given that these returns are generally positive, long-term shareholders are probably happy going into this earnings release.

Do not be surprised to see the stock move on comments made during its conference call. Insight Enterprises is scheduled to hold the call at 09:00:00 ET and can be accessed here.