The end of the earnings season is always a good time to take a step back and see who shined (and who not so much). Let’s take a look at how it distribution & solutions stocks fared in Q4, starting with Insight Enterprises (NASDAQ: NSIT).
IT Distribution & Solutions will be buoyed by the increasing complexity of IT ecosystems, rising cloud adoption, and demand for cybersecurity solutions. Enterprises are less likely than ever to embark on these complicated journeys solo, and companies in the sector boast expertise and scale in these areas. However, cloud migration also means less need for hardware, which could dent demand for large portions of the product portfolio and hurt margins. Additionally, planning for potentially supply chain disruptions is ongoing, as the COVID-19 pandemic showed how damaging a pause in global trade could be in areas like semiconductor procurement.
The 8 it distribution & solutions stocks we track reported a slower Q4. As a group, revenues missed analysts’ consensus estimates by 1.9% while next quarter’s revenue guidance was in line.
Amidst this news, share prices of the companies have had a rough stretch. On average, they are down 11.8% since the latest earnings results.
Insight Enterprises (NASDAQ: NSIT)
With over 35 years of IT expertise and partnerships with more than 8,000 technology providers, Insight Enterprises (NASDAQ: NSIT) provides end-to-end digital transformation solutions that help businesses modernize their IT infrastructure and maximize the value of technology.
Insight Enterprises reported revenues of $2.07 billion, down 7.3% year on year. This print fell short of analysts’ expectations by 4.7%. Overall, it was a disappointing quarter for the company with a significant miss of analysts’ full-year EPS guidance estimates.
The stock is down 9% since reporting and currently trades at $158.26.
Read our full report on Insight Enterprises here, it’s free.
Best Q4: CDW (NASDAQ: CDW)
Serving as a crucial bridge between technology manufacturers and end users since 1984, CDW (NASDAQ: CDW) is a multi-brand provider of information technology solutions that helps businesses and public sector organizations select, implement, and manage hardware, software, and IT services.
CDW reported revenues of $5.19 billion, up 3.3% year on year, outperforming analysts’ expectations by 2.9%. The business had a very strong quarter with an impressive beat of analysts’ EPS estimates.
Although it had a fine quarter compared to its peers, the market seems unhappy with the results as the stock is down 15.8% since reporting. It currently trades at $168.01.
Is now the time to buy CDW? Access our full analysis of the earnings results here, it’s free.
Weakest Q4: ePlus (NASDAQ: PLUS)
Starting as a financing company in 1990 before evolving into a full-service technology provider, ePlus (NASDAQ: PLUS) provides comprehensive IT solutions, professional services, and financing options to help organizations optimize their technology infrastructure and supply chain processes.
ePlus reported revenues of $511 million, flat year on year, falling short of analysts’ expectations by 7.7%. It was a disappointing quarter as it posted a significant miss of analysts’ EPS estimates.
As expected, the stock is down 18.9% since the results and currently trades at $65.74.
Read our full analysis of ePlus’s results here.
Connection (NASDAQ: CNXN)
Starting as a small computer products seller in 1982 and evolving into a Fortune 1000 company, Connection (NASDAQ: CNXN) is a technology solutions provider that helps businesses and government agencies design, purchase, implement, and manage their IT infrastructure and systems.
Connection reported revenues of $708.9 million, up 1.8% year on year. This result came in 1% below analysts' expectations. Overall, it was a disappointing quarter as it also logged a significant miss of analysts’ EPS estimates.
The stock is down 12.7% since reporting and currently trades at $62.59.
Read our full, actionable report on Connection here, it’s free.
Ingram Micro (NYSE: INGM)
Operating as the crucial link in the global technology supply chain with a presence in 57 countries, Ingram Micro (NYSE: INGM) is a global technology distributor that connects manufacturers with resellers, providing hardware, software, cloud services, and logistics expertise.
Ingram Micro reported revenues of $13.34 billion, up 2.5% year on year. This print surpassed analysts’ expectations by 1.2%. However, it was a slower quarter, with EPS guidance for the next quarter missing analysts' estimates.
The stock is down 7.7% since reporting and currently trades at $19.31.
Read our full, actionable report on Ingram Micro here, it’s free.
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