ePlus (NASDAQ:PLUS) Announces Quarterly Earnings Results, Beats Estimates By $0.09 EPS

ePlus (NASDAQ:PLUS) issued its earnings results on Tuesday. The software maker reported $1.28 earnings per share for the quarter, beating analysts’ consensus estimates of $1.19 by $0.09, FiscalAI reports. The firm had revenue of $649.11 million for the quarter, compared to the consensus estimate of $639.95 million. ePlus had a return on equity of 11.36% and a net margin of 5.24%.

Here are the key takeaways from ePlus’ conference call:

• Demand and backlog strengthened: Bookings and open orders increased significantly, with open orders more than $650 million above the prior year and total open orders exceeding $1.5 billion. Management said AI-related infrastructure opportunities are broad-based, although much of the backlog is expected to convert gradually, particularly in the second half of the fiscal year and beyond.
• AI, security and managed services remained growth priorities. Security gross billings rose 15.6%, while managed services revenue surpassed $50 million and grew more than 15%, driven by cloud and data center services. The company also cited multiple large AI infrastructure wins and a growing pipeline of services-rich AI offerings.
• ePlus maintained its fiscal 2027 guidance and highlighted a strong balance sheet, ending the quarter with $448.9 million in cash. It repurchased approximately 251,000 shares for $20.8 million, declared a $0.27 per-share dividend, and authorized a new buyback plan for up to 1.5 million shares.
• Profitability declined despite modest revenue growth: First-quarter net sales rose 1% to $649.1 million, but gross margin fell to 23.3% from 23.9%, adjusted EBITDA declined to $47.8 million from $52.7 million, and non-GAAP diluted EPS decreased to $1.28 from $1.41. Professional services revenue fell 5.1% due to project delays, while management said certain large retail projects would take longer to contribute.

ePlus Stock Down 2.7%

Shares of NASDAQ:PLUS traded down $2.60 during trading on Wednesday, hitting $94.44. The stock had a trading volume of 276,615 shares, compared to its average volume of 209,178. The stock has a 50-day simple moving average of $85.32 and a two-hundred day simple moving average of $83.30. ePlus has a 12-month low of $62.42 and a 12-month high of $98.14. The stock has a market capitalization of $2.47 billion, a price-to-earnings ratio of 19.54, a price-to-earnings-growth ratio of 1.25 and a beta of 1.00.

ePlus Dividend Announcement

The firm also recently disclosed a quarterly dividend, which will be paid on Wednesday, September 16th. Stockholders of record on Tuesday, August 25th will be issued a dividend of $0.27 per share. This represents a $1.08 annualized dividend and a dividend yield of 1.1%. The ex-dividend date is Tuesday, August 25th. ePlus’s dividend payout ratio is currently 22.31%.

Insider Activity

In related news, COO Darren S. Raiguel sold 1,935 shares of the business’s stock in a transaction that occurred on Wednesday, July 29th. The stock was sold at an average price of $94.06, for a total transaction of $182,006.10. Following the completion of the sale, the chief operating officer owned 69,236 shares in the company, valued at $6,512,338.16. The trade was a 2.72% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. Also, CFO Elaine D. Marion sold 2,818 shares of the company’s stock in a transaction on Wednesday, July 29th. The shares were sold at an average price of $95.22, for a total transaction of $268,329.96. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold a total of 6,102 shares of company stock worth $571,705 in the last three months. Corporate insiders own 2.20% of the company’s stock.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently bought and sold shares of the business. State of Tennessee Department of Treasury boosted its stake in ePlus by 22.3% during the fourth quarter. State of Tennessee Department of Treasury now owns 12,568 shares of the software maker’s stock valued at $1,078,000 after buying an additional 2,295 shares in the last quarter. EP Wealth Advisors LLC acquired a new position in shares of ePlus during the fourth quarter worth approximately $218,000. Empowered Funds LLC raised its holdings in ePlus by 28.3% in the 4th quarter. Empowered Funds LLC now owns 10,287 shares of the software maker’s stock valued at $902,000 after acquiring an additional 2,271 shares in the last quarter. XTX Topco Ltd bought a new position in ePlus in the fourth quarter worth $291,000. Finally, Susquehanna Fundamental Investments LLC acquired a new stake in shares of ePlus during the 4th quarter valued at about $2,086,000. Hedge funds and other institutional investors own 93.80% of the company’s stock.

Wall Street Analysts Forecast Growth

PLUS has been the topic of several recent analyst reports. Weiss Ratings reissued a “hold (c+)” rating on shares of ePlus in a research note on Friday, July 10th. Zacks Research raised shares of ePlus from a “strong sell” rating to a “hold” rating in a report on Friday, July 31st. Two equities research analysts have rated the stock with a Hold rating, According to data from MarketBeat, the company presently has a consensus rating of “Hold”.

ePlus Company Profile

ePlus Inc (NASDAQ:PLUS) is a technology solutions provider that helps enterprises and public-sector organizations maximize the value of their information technology investments. The company specializes in designing, implementing and managing complex IT infrastructures, with a focus on security, cloud computing, data center modernization and unified communications. By combining consulting services with software license management and hardware procurement, ePlus delivers end-to-end solutions that align with its clients’ strategic objectives.

The company’s offerings include cybersecurity assessments and managed security services, hybrid and public cloud deployments, network architecture and optimization, and collaboration platforms.