Cloud and security firm ePlus beats Q1 net sales view, reveals new stock repurchase
Overview
ePlus fiscal Q1 net sales rise 19%, beating analyst expectations
Adjusted EPS for fiscal Q1 increases 24.8%, exceeding analyst estimates
Co announces first quarterly dividend and new stock repurchase program
Outlook
ePlus forecasts fiscal year 2026 net sales growth in upper single digits
Company expects fiscal year 2026 gross profit growth in upper single digits
ePlus sees fiscal year 2026 adjusted EBITDA growth in mid-teens
Result Drivers
SERVICES REVENUE - Services segment saw a 48.8% increase, driven by the acquisition of Bailiwick Services, LLC
PRODUCT SALES - Higher cloud and security product sales contributed to a 13.9% increase in product segment sales
FINANCING BUSINESS SALE - Sale of domestic financing business enhanced capital position and strategic focus, per CEO Mark Marron
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q1 Net sales | Beat | $637.30 mln | $516.70 mln (2 Analysts) |
Q1 Adjusted EPS | Beat | $1.26 | $1.17 (1 Analyst) |
Q1 Adjusted EBITDA | Beat | $46.70 mln | $43.10 mln (2 Analysts) |
Q1 Gross Margin |
| 23.3% |
|
Q1 Gross Profit |
| $148.20 mln |
|
Analyst Coverage
The one available analyst rating on the shares is "strong buy"
The average consensus recommendation for the it services & consulting peer group is "buy."
Wall Street's median 12-month price target for ePlus inc is $92.00, about 30.9% above its August 6 closing price of $63.60
The stock recently traded at 13 times the next 12-month earnings vs. a P/E of 14 three months ago
Press Release: ID:nPntdqs9a
