ePlus (NASDAQ:PLUS) Issues Earnings Results

ePlus (NASDAQ:PLUS) posted its quarterly earnings data on Tuesday. The software maker reported $1.28 earnings per share for the quarter, beating the consensus estimate of $1.19 by $0.09, FiscalAI reports. The business had revenue of $649.11 million during the quarter, compared to the consensus estimate of $639.95 million. ePlus had a return on equity of 11.54% and a net margin of 4.91%.

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 Performance

PLUS stock traded down $2.75 during trading on Thursday, reaching $91.81. 117,308 shares of the company were exchanged, compared to its average volume of 209,942. ePlus has a 52-week low of $62.42 and a 52-week high of $98.14. The company has a market cap of $2.40 billion, a P/E ratio of 20.09, a PEG ratio of 1.30 and a beta of 1.00. The stock’s 50 day moving average price is $85.43 and its 200 day moving average price is $83.35.

ePlus Announces Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Wednesday, September 16th. Investors of record on Tuesday, August 25th will be paid a $0.27 dividend. The ex-dividend date is Tuesday, August 25th. This represents a $1.08 annualized dividend and a dividend yield of 1.2%. ePlus’s dividend payout ratio (DPR) is 22.31%.

Wall Street Analysts Forecast Growth

A number of analysts recently weighed in on the stock. Weiss Ratings reiterated 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 investment analysts have rated the stock with a Hold rating, According to MarketBeat.com, the company currently has a consensus rating of “Hold”.

Insiders Place Their Bets

In other ePlus news, COO Darren S. Raiguel sold 1,935 shares of the company’s stock in a transaction on Wednesday, July 29th. The stock was sold at an average price of $94.06, for a total value of $182,006.10. Following the sale, the chief operating officer owned 69,236 shares of the company’s stock, valued at approximately $6,512,338.16. This represents 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 accessible through the SEC website. Also, CFO Elaine D. Marion sold 5,514 shares of ePlus stock in a transaction on Tuesday, August 4th. The stock was sold at an average price of $96.41, for a total value of $531,604.74. Following the transaction, the chief financial officer directly owned 84,259 shares of the company’s stock, valued at $8,123,410.19. This trade represents a 6.14% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Over the last quarter, insiders have sold 13,284 shares of company stock worth $1,261,970. 2.20% of the stock is owned by company insiders.

Institutional Investors Weigh In On ePlus

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

About ePlus

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.