Insight Enterprises (NASDAQ: NSIT) reported Q4 EPS of $1.31, $0.19 better than the analyst estimate of $1.12. Revenue for the quarter came in at $1.75 billion versus the consensus estimate of $1.76 billion.

• Gross profit up 9% year over year to $254.2 million for the fourth quarter and up 8% for the full year
• Earnings from operations up 29% to $58.7 million for the fourth quarter and up 30% for the full year
• Diluted earnings per share of $1.31 increased more than 100% for the fourth quarter year over year and record diluted earnings per share of $4.55 increased 82% for the full year
• Cash flows provided by operations of $292.6 million in 2018 compared to cash used in operations of $307.1 million in 2017
• In the fourth quarter of 2018, consolidated net sales were $1.75 billion, which was down 2%, year to year, reflecting a decline in software net sales offset by strong growth in services net sales.
• The decline in software net sales was due primarily to the adoption of ASC 606, which resulted in more software sales being recorded net and a higher mix of cloud and maintenance service offerings which are recorded net in services. Gross profit increased 9%, year over year, with gross margins increasing 140 basis points to 14.5% for the quarter. Earnings from operations grew 29%, year over year.

“Our fourth quarter results reflect a strong close to another great year for our company. We focused on sales in higher margin categories, including cloud subscription, maintenance and professional services offerings, which drove up gross margins 140 basis points and earnings from operations up double digits for the quarter,” stated Ken Lamneck, president and CEO.

For the full year 2018, consolidated net sales were $7.1 billion, up 6% year over year, reflecting strong growth in services including an increase in sales of cloud offerings and software maintenance. Gross profit increased 8%, year over year, with gross margins increasing 30 basis points to 14.0% for the full year. Earnings from operations grew 30%, year over year, with each of our geographic segments generating double digit growth in earnings from operations.

“We are happy to report another year of record results for Insight. Our global team delivered a third consecutive year of double-digit earnings growth while accelerating cash flow generation, expanding our services offerings and integrating strategic acquisitions,” stated Lamneck. ”Our solution area go-to-market strategy, deep technical talent and consistent focus on operational excellence have accelerated our financial performance and uniquely position us to compete in the marketplace in 2019 and beyond,” stated Lamneck.

GUIDANCE:

Insight Enterprises sees FY2019 EPS of $4.75-$4.85, versus the consensus of $4.55.

For earnings history and earnings-related data on Insight Enterprises (NSIT) click here.