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

ePlus (NASDAQ:PLUS) announced its quarterly earnings data 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 net margin of 4.91% and a return on equity of 11.51%. The company had revenue of $667.92 million during the quarter, compared to analysts’ expectations 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 Up 11.7%

Shares of NASDAQ PLUS traded up $9.68 on Friday, hitting $92.11. The company had a trading volume of 443,894 shares, compared to its average volume of 210,986. ePlus has a 12-month low of $73.08 and a 12-month high of $98.21. The business has a 50 day moving average of $91.91 and a two-hundred day moving average of $85.82. The firm has a market capitalization of $2.40 billion, a P/E ratio of 19.15, a PEG ratio of 1.15 and a beta of 0.95.

ePlus Announces Dividend

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

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

Insider Activity

In related news, COO Darren Raiguel sold 470 shares of the firm’s stock in a transaction dated Tuesday, September 15th. The stock was sold at an average price of $93.11, for a total transaction of $43,761.70. Following the sale, the chief operating officer directly owned 67,182 shares in the company, valued at approximately $6,255,316.02. This trade represents a 0.69% decrease in their position. The sale was disclosed in a filing with the SEC, which can be accessed through this link. Also, CFO Elaine Marion sold 4,842 shares of the business’s stock in a transaction that occurred on Tuesday, October 13th. The stock was sold at an average price of $96.33, for a total value of $466,429.86. Following the transaction, the chief financial officer directly owned 79,259 shares in the company, valued at $7,635,019.47. This trade represents a 5.76% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Over the last quarter, insiders sold 7,500 shares of company stock worth $709,495. 2.20% of the stock is currently owned by corporate insiders.

Analyst Ratings Changes

PLUS has been the subject of several research analyst reports. Weiss Ratings restated a “hold (c+)” rating on shares of ePlus in a research note on Tuesday, October 6th. Zacks Research raised ePlus from a “strong sell” rating to a “hold” rating in a research note on Friday, July 31st. Two investment analysts have rated the stock with a Hold rating. According to data from MarketBeat, ePlus currently has a consensus rating of “Hold”.

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.