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 (EPS) for the quarter, topping the consensus estimate of $1.19 by $0.09, FiscalAI reports. ePlus had a net margin of 5.24% and a return on equity of 11.36%. The business had revenue of $649.11 million for the quarter, compared to analyst estimates of $639.95 million.

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 Price Performance

Shares of NASDAQ:PLUS traded down $2.49 during midday trading on Wednesday, hitting $94.56. 478,022 shares of the company’s stock were exchanged, compared to its average volume of 209,702. ePlus has a 12 month low of $62.42 and a 12 month high of $98.14. The company has a market cap of $2.47 billion, a PE ratio of 19.54, a price-to-earnings-growth ratio of 1.25 and a beta of 1.00. The stock has a 50 day moving average price of $85.32 and a 200-day moving average price of $83.30.

ePlus Announces Dividend

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

Insider Transactions at ePlus

In other ePlus 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 directly owned 69,236 shares of the company’s stock, valued at approximately $6,512,338.16. The trade was a 2.72% decrease in their position. The sale was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Also, CFO Elaine D. Marion sold 2,818 shares of ePlus stock in a transaction that occurred on Wednesday, July 29th. The shares were sold at an average price of $95.22, for a total value 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 valued at $571,705 in the last quarter. Company insiders own 2.20% of the company’s stock.

Institutional Inflows and Outflows

Large investors have recently made changes to their positions in the company. Osaic Holdings Inc. boosted its holdings in ePlus by 361.9% during the second quarter. Osaic Holdings Inc. now owns 448 shares of the software maker’s stock worth $32,000 after purchasing an additional 351 shares during the last quarter. Kestra Advisory Services LLC bought a new position in shares of ePlus during the 4th quarter worth approximately $108,000. US Bancorp DE lifted its position in shares of ePlus by 856.4% during the 3rd quarter. US Bancorp DE now owns 1,731 shares of the software maker’s stock worth $123,000 after buying an additional 1,550 shares in the last quarter. Healthcare of Ontario Pension Plan Trust Fund purchased a new position in shares of ePlus in the 4th quarter worth approximately $138,000. Finally, Focus Partners Wealth purchased a new position in shares of ePlus in the 3rd quarter worth approximately $154,000. 93.80% of the stock is owned by institutional investors.

Analysts Set New Price Targets

Several analysts have recently commented on the company. Weiss Ratings restated a “hold (c+)” rating on shares of ePlus in a research note on Friday, July 10th. Zacks Research upgraded ePlus from a “strong sell” rating to a “hold” rating in a report on Friday, July 31st. Two research analysts have rated the stock with a Hold rating, Based on data from MarketBeat.com, 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.