Why Insight Enterprises Shares Plunged

Updated

Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.

What: Shares of Insight Enterprises (NAS: NSIT) have plunged today by as much as 14% after the technology company reported first-quarter earnings.

So what: Revenue totaled $1.24 billion, which was just about what the market was looking for. The bottom line told a similar story, with the $0.39 per-share profit just a penny more than the Street was forecasting.


Now what: CEO Ken Lamneck said that Insight was focused on integrating recent acquisitions during the quarter and improving its profitability through cost cutting. Full-year 2012 sales are expected to increase in the mid-single-digit range, with earnings per share expected between $2.20 and $2.30. The midpoint of that guidance is a little shy of the $2.27 consensus estimate.

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At the time thisarticle was published Fool contributorEvan Niuholds no position in any company mentioned.Click hereto see his holdings and a short bio. The Motley Fool has adisclosure policy. We Fools may not all hold the same opinions, but we all believe thatconsidering a diverse range of insightsmakes us better investors. Try any of our Foolish newsletter servicesfree for 30 days.

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