Shares of Insight Enterprises Inc. (NSIT) plunged over 14% on Wednesday after the IT solutions provider reported weaker-than-expected financial results for the third quarter of 2024 and lowered its full-year earnings guidance. The disappointing results fueled investor concerns about the company's ability to navigate the challenging macroeconomic environment, marked by softening demand for IT services, supply chain disruptions, and rising operational costs.
For the third quarter, Insight Enterprises reported earnings of $2.19 per share, missing analysts' consensus estimate of $2.37 per share. The company's revenue of $2.088 billion also fell short of Wall Street's expectations of $2.337 billion. The company attributed the miss to weaker demand for hardware and services, as well as margin pressure from rising costs.
Adding to the investor concerns, Insight Enterprises lowered its full-year earnings guidance, citing the persistent macroeconomic challenges. The company now expects adjusted diluted earnings per share for the full year 2024 to be between $9.40 and $9.70, down from its previous guidance range of $10.60 to $10.90. Analysts had expected full-year earnings of $10.68 per share.
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