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 Q2, 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 strong Q2. As a group, revenues beat analysts’ consensus estimates by 5.9% while next quarter’s revenue guidance was 0.5% below.

In light of this news, share prices of the companies have held steady. On average, they are relatively unchanged since the latest earnings results.

Weakest Q2: 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 $2.09 billion, down 3.2% year on year. This print fell short of analysts’ expectations by 2.4%. Overall, it was a slower quarter for the company with a significant miss of analysts’ revenue and EPS estimates.

"Our results in the second quarter met our expectations as we navigated a challenging environment driven by the partner program changes” stated Joyce Mullen, President and Chief Executive Officer.

Insight Enterprises delivered the weakest performance against analyst estimates and slowest revenue growth of the whole group. Unsurprisingly, the stock is down 25% since reporting and currently trades at $108.57.

Read our full report on Insight Enterprises here, it’s free for active Edge members.

Best Q2: 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 $637.3 million, up 19% year on year, outperforming analysts’ expectations by 23.3%. The business had an incredible quarter with a solid beat of analysts’ revenue and EPS estimates.

ePlus scored the biggest analyst estimates beat and fastest revenue growth among its peers. The market seems happy with the results as the stock is up 15.6% since reporting. It currently trades at $73.33.

Is now the time to buy ePlus? Access our full analysis of the earnings results here, it’s free for active Edge members.

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 $12.79 billion, up 10.9% year on year, exceeding analysts’ expectations by 6.4%. Still, it was a slower quarter as it posted a significant miss of analysts’ EPS estimates and revenue guidance for next quarter slightly missing analysts’ expectations.

Interestingly, the stock is up 16.3% since the results and currently trades at $21.92.

Read our full analysis of Ingram Micro’s results here.

TD SYNNEX (NYSE: SNX)

Serving as the crucial middleman in the technology supply chain, TD SYNNEX (NYSE: SNX) is a global technology distributor that connects thousands of IT manufacturers with resellers, helping businesses access hardware, software, and technology solutions.

TD SYNNEX reported revenues of $15.65 billion, up 6.6% year on year. This result topped analysts’ expectations by 3.5%. It was a stunning quarter as it also logged a beat of analysts’ EPS estimates.

The stock is up 4.3% since reporting and currently trades at $156.80.

Read our full, actionable report on TD SYNNEX here, it’s free for active Edge members.

ScanSource (NASDAQ: SCSC)

Operating as a crucial link in the technology supply chain since 1992, ScanSource (NASDAQ: SCSC) is a hybrid distributor that connects hardware, software, and cloud services from technology suppliers to resellers and business customers.

ScanSource reported revenues of $812.9 million, up 8.9% year on year. This print beat analysts’ expectations by 4.6%. Overall, it was an exceptional quarter as it also put up an impressive beat of analysts’ revenue estimates and a beat of analysts’ EPS estimates.

The stock is flat since reporting and currently trades at $42.59.

Read our full, actionable report on ScanSource here, it’s free for active Edge members.

Market Update

Thanks to the Fed’s rate hikes in 2022 and 2023, inflation has been on a steady path downward, easing back toward that 2% sweet spot. Fortunately (miraculously to some), all this tightening didn’t send the economy tumbling into a recession, so here we are, cautiously celebrating a soft landing. The cherry on top? Recent rate cuts (half a point in September 2024, a quarter in November) have propped up markets, especially after Trump’s November win lit a fire under major indices and sent them to all-time highs. However, there’s still plenty to ponder — tariffs, corporate tax cuts, and what 2025 might hold for the economy.

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