ePlus (NASDAQ:PLUS) Announces Quarterly Earnings Results, Beats Expectations By $0.44 EPS

ePlus (NASDAQ:PLUS) announced its quarterly earnings data on Wednesday. The software maker reported $1.45 earnings per share for the quarter, topping analysts’ consensus estimates of $1.01 by $0.44, FiscalAI reports. ePlus had a net margin of 5.40% and a return on equity of 11.44%. The business had revenue of $614.77 million for the quarter, compared to analysts’ expectations of $529.60 million.

Here are the key takeaways from ePlus’ conference call:

• Strong Q3 results — net sales rose 24.6% to $614.8M, product sales +32.2%, net earnings from continuing operations +129.3% to $33.4M, and adjusted EBITDA nearly doubled to $53.4M (8.7% margin).
• Management cites AI, cloud, networking, and security as the main demand drivers and says integrated solutions plus expanded AI envisioning/acceleration services are helping win share across mid‑market and enterprise customers.
• The company raised full‑year targets, now guiding to 20–22% net sales growth, 19–21% gross profit growth, and 41–43% adjusted EBITDA growth.
• Services were mixed (managed services +10.5% but professional services -7.8% from retail project delays) and inventory rose to $241M, pushing the cash conversion cycle to 41 days and reducing cash balances, which could pressure near‑term working capital and timing of revenue recognition.
• Board approved a quarterly dividend of $0.25/share and the company repurchased >200,000 shares, highlighting continued shareholder returns and stated flexibility to pursue acquisitions.

ePlus Stock Performance

Shares of PLUS stock traded down $1.43 during trading hours on Thursday, reaching $84.66. The company had a trading volume of 196,417 shares, compared to its average volume of 141,193. The business has a fifty day moving average price of $88.25 and a 200-day moving average price of $79.02. ePlus has a one year low of $53.83 and a one year high of $93.98. The firm has a market cap of $2.24 billion, a PE ratio of 18.36, a price-to-earnings-growth ratio of 1.11 and a beta of 1.01.

ePlus News Roundup

Here are the key news stories impacting ePlus this week:

• Positive Sentiment: Q3 earnings and revenue beat consensus — EPS $1.45 vs $1.01 estimate; consolidated net sales $614.8M, above Street expectations. Strong net income/EPS performance supports valuation. Earnings Report
• Positive Sentiment: Raised fiscal‑year guidance: company now targets roughly 20–22% net‑sales growth with revenue guidance around $2.4B–$2.5B (above consensus), giving forward visibility into growth from AI-related projects. Guidance Raise
• Positive Sentiment: Board authorized a quarterly cash dividend of $0.25 per share, returning capital to shareholders and signaling confidence in cash generation over the medium term. Dividend Announcement
• Neutral Sentiment: Analyst/feature commentary highlights strong AI tailwinds and large enterprise project wins that underpin longer‑term revenue growth, but notes timing and delivery risk on multi‑phase contracts. AI Deep Dive
• Negative Sentiment: Margins and cash‑flow concerns: gross profit and operating profit fell year‑over‑year in Q3, services revenue dipped (-0.7%), and operating cash flow was negative (~‑$34.8M), highlighting working‑capital or timing issues that could pressure near‑term earnings quality. Profit & Cash‑Flow Details
• Negative Sentiment: Minor insider selling activity and mixed institutional flows noted in filings — not large but can contribute to short‑term pressure amid profit‑taking. Insider/Institutional Activity

Analyst Upgrades and Downgrades

A number of equities research analysts have recently commented on the company. Wall Street Zen cut ePlus from a “strong-buy” rating to a “buy” rating in a research note on Friday, January 23rd. Zacks Research downgraded shares of ePlus from a “strong-buy” rating to a “hold” rating in a research report on Tuesday, January 6th. Finally, Weiss Ratings reaffirmed a “hold (c+)” rating on shares of ePlus in a report on Thursday, January 22nd. Two research analysts have rated the stock with a Hold rating, Based on data from MarketBeat.com, the stock has a consensus rating of “Hold”.

Insider Transactions at ePlus

In other ePlus news, Director John E. Callies sold 560 shares of ePlus stock in a transaction that occurred on Monday, December 8th. The shares were sold at an average price of $90.03, for a total value of $50,416.80. Following the completion of the sale, the director owned 21,428 shares of the company’s stock, valued at approximately $1,929,162.84. The trade was a 2.55% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Corporate insiders own 1.93% of the company’s stock.

Institutional Trading of ePlus

A number of hedge funds have recently bought and sold shares of the company. Amundi boosted its position in ePlus by 333.0% in the first quarter. Amundi now owns 5,361 shares of the software maker’s stock worth $313,000 after purchasing an additional 4,123 shares during the last quarter. AQR Capital Management LLC lifted its stake in shares of ePlus by 20.4% in the 1st quarter. AQR Capital Management LLC now owns 45,612 shares of the software maker’s stock worth $2,784,000 after purchasing an additional 7,742 shares during the period. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. boosted its holdings in shares of ePlus by 4.6% in the first quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 15,666 shares of the software maker’s stock worth $956,000 after buying an additional 687 shares during the last quarter. Millennium Management LLC grew its position in ePlus by 103.1% during the first quarter. Millennium Management LLC now owns 226,399 shares of the software maker’s stock valued at $13,817,000 after buying an additional 114,900 shares during the period. Finally, Jones Financial Companies Lllp increased its holdings in ePlus by 628.3% during the first quarter. Jones Financial Companies Lllp now owns 3,066 shares of the software maker’s stock valued at $187,000 after buying an additional 2,645 shares during the last quarter. Hedge funds and other institutional investors own 93.80% of the company’s stock.

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.