ePlus (NASDAQ:PLUS) Posts Quarterly Earnings Results, Beats Expectations By $0.35 EPS

ePlus (NASDAQ:PLUS) issued its earnings results on Thursday. The software maker reported $1.82 earnings per share (EPS) for the quarter, beating the consensus estimate of $1.47 by $0.35, FiscalAI reports. ePlus had a return on equity of 11.51% and a net margin of 4.91%. The company had revenue of $667.92 million for the quarter, compared to the consensus estimate of $636.10 million.

Here are the key takeaways from ePlus’ conference call:

• ePlus raised its fiscal 2027 outlook, now expecting upper-single-digit growth in net sales and gross profit and low-double-digit growth in Adjusted EBITDA. Management cited strong first-half results, customer demand, and a substantial backlog, while noting some open orders may extend into fiscal 2028.
• Second-quarter net sales rose 9.7%, gross profit increased 11.2%, and Adjusted EBITDA grew 14.3%; operating income grew 15.8%, demonstrating improved operating leverage. Gross billings reached a record $1.07 billion.
• Product sales increased 12.8%, led by 39.2% growth in data center and cloud, amid rising AI-related activity. Open orders were up nearly $750 million year over year to more than $1.8 billion, with strength in data center, cloud, networking, and security.
• Professional services revenue fell 11.3%, as large retail customer projects were delayed and the prior-year quarter set a record. Professional services gross margin also declined, reflecting lower revenue and a higher share of third-party costs.
• Quarter-end cash was $380.9 million, down from $448.9 million at the prior quarter-end, primarily because inventory rose to $271.4 million for customer projects management expects to ship in the second half. The company repurchased about 400,000 shares in the first half and declared a $0.27-per-share dividend.

ePlus Stock Performance

NASDAQ:PLUS traded up $9.68 during trading hours on Friday, reaching $92.11. The stock had a trading volume of 443,894 shares, compared to its average volume of 210,986. The stock has a market capitalization of $2.40 billion, a PE ratio of 19.15, a PEG ratio of 1.15 and a beta of 0.95. ePlus has a 52 week low of $73.08 and a 52 week high of $98.21. The company has a 50 day moving average price of $91.91 and a two-hundred day moving average price of $85.82.

ePlus Dividend Announcement

The company also recently disclosed a quarterly dividend, which will be paid on Wednesday, December 16th. Shareholders of record on Tuesday, November 24th will be paid a $0.27 dividend. The ex-dividend date of this dividend is Tuesday, November 24th. This represents a $1.08 dividend on an annualized basis and a yield of 1.2%. ePlus’s payout ratio is presently 23.63%.

Analyst Ratings Changes

A number of equities research analysts have issued reports on PLUS shares. Weiss Ratings reaffirmed a “hold (c+)” rating on shares of ePlus in a report on Tuesday, October 6th. Zacks Research upgraded shares of ePlus from a “strong sell” rating to a “hold” rating in a research report on Friday, July 31st. Two research analysts have rated the stock with a Hold rating. Based on data from MarketBeat.com, the stock presently has a consensus rating of “Hold”.

Insider Activity

In related news, CFO Elaine D. Marion sold 4,842 shares of the business’s stock in a transaction on Tuesday, October 13th. The shares were sold at an average price of $96.33, for a total value of $466,429.86. Following the sale, the chief financial officer owned 79,259 shares in the company, valued at approximately $7,635,019.47. The trade was a 5.76% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Also, COO Darren S. Raiguel sold 1,000 shares of the business’s stock in a transaction on Monday, August 10th. The stock was sold at an average price of $90.83, for a total transaction of $90,830.00. Following the completion of the sale, the chief operating officer owned 68,036 shares in the company, valued at $6,179,709.88. This represents a 1.45% decrease in their position. The disclosure for this sale is available in the SEC filing. In the last ninety days, insiders sold 7,500 shares of company stock worth $709,495. 2.20% of the stock is currently owned by insiders.

ePlus News Roundup

Here are the key news stories impacting ePlus this week:

• Positive Sentiment: ePlus reported EPS of $1.82, beating analyst expectations of $1.47, while revenue of $667.9 million topped the $636.1 million consensus and increased 9.7% year over year. Earnings results
• Positive Sentiment: Gross billings rose 4.3% to a record $1.067 billion, and the company increased its fiscal 2027 guidance—signaling stronger expectations for the year. Fiscal 2027 second-quarter results
• Positive Sentiment: The company declared a quarterly dividend of $0.27 per share, equivalent to $1.08 annually and a 1.3% yield. The dividend is payable December 16 to shareholders of record November 24. Dividend and earnings announcement
• Neutral Sentiment: The results also noted a leadership transition, but the available announcement details do not specify its expected business or financial impact. Results and leadership transition
• Negative Sentiment: Services revenue declined 2.4% to $120.8 million, a weaker area within an otherwise solid quarter. Fiscal 2027 second-quarter results

About ePlus

ePlus inc. (NASDAQ: PLUS) provides technology solutions, professional services and financing to organizations in the commercial, government, healthcare and education sectors. Through its technology business, the company helps customers plan, implement and manage information technology environments, including data center, networking, cybersecurity, collaboration, cloud and digital infrastructure solutions.

The company also offers managed and professional services, technology consulting, IT asset management, and lifecycle services.