NEW YORK — Shares of Insight Enterprises Inc. climbed 20 percent Tuesday after the distributor of computer hardware and software posted a 44 percent jump in its fourth-quarter earnings, helped by higher revenue as more businesses replaced old technology products amid the recovering economy.
"The technology refresh cycle provided a nice tailwind for our business in 2010, and I believe our team executed very well to ensure we participated in the market recovery and even grew share in certain categories," said Ken Lamneck, president and CEO, in a statement.
Shares of Insight, which is based in Tempe, surged $3, or 20.5 percent, to $17.61 in afternoon trading after touching a 52-week high of $17.94 earlier in the session.
After the market closed Monday, Insight reported net income of $25 million, or 53 cents per share, for the three months ended Dec. 31, up from $17.4 million, or 37 cents per share, a year earlier.
Insight said its results in the latest quarter included a tax benefit of $1.6 million.
Revenue rose 14 percent to $1.34 billion from $1.18 billion.
Analysts, on average, were expecting earnings of 45 cents per share on revenue of $1.35 billion, according to a poll by FactSet.
The company forecast 2011 earnings of $1.70 to $1.80 per share. Analysts are looking for $1.76 per share.
Raymond James analyst Brian G. Alexander kept a "Market Perform" rating on Insight and said while the company did well in 2010 and has a favorable outlook for 2011, it "still has a fair amount of heavy lifting that could present risks and mute operating leverage going forward."