ePlus (NASDAQ:PLUS) Announces Quarterly Earnings Results

ePlus (NASDAQ:PLUS) released its earnings results on Tuesday. The software maker reported $1.28 EPS for the quarter, beating analysts’ consensus estimates of $1.19 by $0.09, FiscalAI reports. The company 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 11.36% and a net margin of 5.24%.

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 Down 2.5%

Shares of ePlus stock traded down $2.38 on Wednesday, hitting $94.67. The company’s stock had a trading volume of 365,105 shares, compared to its average volume of 209,576. The company has a market capitalization of $2.47 billion, a P/E ratio of 19.56, a price-to-earnings-growth ratio of 1.25 and a beta of 1.00. ePlus has a 52-week low of $62.42 and a 52-week high of $98.14. The firm has a fifty day moving average price of $85.32 and a 200-day moving average price of $83.30.

ePlus Dividend Announcement

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

Insider Activity

In other ePlus news, COO Darren S. Raiguel sold 1,935 shares of ePlus stock in a transaction dated Wednesday, July 29th. The shares were sold at an average price of $94.06, for a total transaction of $182,006.10. Following the completion of the transaction, the chief operating officer owned 69,236 shares in the company, valued at approximately $6,512,338.16. The trade was a 2.72% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is accessible through this link. Also, CFO Elaine D. Marion sold 2,818 shares of the company’s stock in a transaction dated Wednesday, July 29th. The shares were sold at an average price of $95.22, for a total transaction of $268,329.96. The SEC filing for this sale provides additional information. Insiders have sold a total of 6,102 shares of company stock valued at $571,705 over the last 90 days. 2.20% of the stock is currently owned by insiders.

Hedge Funds Weigh In On ePlus

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

Analyst Upgrades and Downgrades

Several brokerages recently commented on PLUS. 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 analysts have rated the stock with a Hold rating, Based on data from MarketBeat.com, the stock currently has an average rating of “Hold”.

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.