ePlus (NASDAQ:PLUS) Announces Earnings Results

ePlus (NASDAQ:PLUS) posted its quarterly earnings results on Thursday. The software maker reported $1.82 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates 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 analyst estimates 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 Price Performance

PLUS stock traded up $9.68 during trading on Friday, hitting $92.11. 443,894 shares of the company traded hands, compared to its average volume of 210,986. The stock’s 50-day simple moving average is $91.91 and its 200 day simple moving average is $85.82. The company has a market cap of $2.40 billion, a PE ratio of 19.15, a P/E/G ratio of 1.15 and a beta of 0.95. ePlus has a 1 year low of $73.08 and a 1 year high of $98.21.

ePlus Dividend Announcement

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

Key ePlus News

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 Buying and Selling at ePlus

In other news, Director John E. Callies sold 500 shares of the firm’s stock in a transaction that occurred on Friday, August 14th. The shares were sold at an average price of $88.09, for a total transaction of $44,045.00. Following the sale, the director owned 20,648 shares of the company’s stock, valued at $1,818,882.32. This trade represents a 2.36% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. Also, CFO Elaine D. Marion sold 4,842 shares of ePlus stock in a transaction that occurred on Tuesday, October 13th. The shares were sold at an average price of $96.33, for a total transaction of $466,429.86. Following the transaction, the chief financial officer directly owned 79,259 shares of the company’s stock, valued at approximately $7,635,019.47. This trade represents a 5.76% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Over the last ninety days, insiders sold 7,500 shares of company stock valued at $709,495. 2.20% of the stock is owned by company insiders.

Analyst Ratings Changes

A number of research firms have recently weighed in on PLUS. Zacks Research upgraded shares of ePlus from a “strong sell” rating to a “hold” rating in a research note on Friday, July 31st. Weiss Ratings restated a “hold (c+)” rating on shares of ePlus in a research report on Tuesday, October 6th. Two research analysts have rated the stock with a Hold rating. According to data from MarketBeat.com, the stock has an average rating of “Hold”.

ePlus Company Profile

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.