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Investing.com -- Insight Enterprises Inc. (NASDAQ:NSIT) shares tumbled 12.8% after the IT solutions provider reported second-quarter results that fell short of analyst expectations, with both earnings and revenue missing estimates amid challenging market conditions.
The company reported adjusted earnings per share of $2.45 for the second quarter, slightly below the analyst consensus of $2.46. Revenue came in at $2.09 billion, missing the analyst estimate of $2.15 billion and representing a 3% decrease compared to the same period last year.
Despite the overall revenue decline, Insight’s hardware business showed some resilience, posting a 2% year-over-year increase. However, software product sales decreased 14% YoY, while services revenue fell 2%. The company attributed the challenging environment to partner program changes.
"Our results in the second quarter met our expectations as we navigated a challenging environment driven by the partner program changes," stated Joyce Mullen (NASDAQ:BINI), President and Chief Executive Officer. "Compared to our plans, we executed well. Our hardware business delivered year over year growth for the second consecutive quarter."
Gross profit decreased 2% YoY to $442.3 million, though gross margin expanded 10 basis points to 21.1%. Adjusted earnings from operations decreased 2% to $129.0 million, representing 6.2% of net sales.
Looking ahead, Insight maintained its full-year 2025 outlook, projecting adjusted diluted earnings per share between $9.70 and $10.10. The midpoint of this guidance range ($9.90) appears to align with analyst expectations. The company expects gross profit to remain approximately flat compared to 2024, with gross margin around 20%.
By region, North American sales decreased 3% to $1.7 billion, while EMEA sales fell 5% to $348.6 million, and APAC sales declined 3% to $58.6 million.
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