ePlus Inc

Latest Results (13.06.2024):

Revenue Growth

In the fourth quarter of fiscal year 2024, ePlus Inc. reported a significant increase in consolidated net sales, which rose by 12.7% to $554.5 million compared to $492.2 million in the same quarter of the previous year. This growth was driven by a 12.6% increase in technology business net sales, reaching $544.1 million.

Profitability Challenges

Despite the revenue growth, ePlus Inc. faced challenges in profitability during the fourth quarter of fiscal year 2024. The company's consolidated gross profit decreased by 1.5% to $130.3 million, and the gross margin declined to 23.5% from 26.9% in the prior year's quarter, primarily due to a lower product margin in the technology business.

Earnings Decline

Net earnings for ePlus Inc. in the fourth quarter of fiscal year 2024 decreased by 33.1% to $22.0 million, down from $32.9 million in the same quarter of the previous year. This decline was reflected in both GAAP and non-GAAP diluted net earnings per common share, which decreased by 33.3% and 31.6% respectively.

Annual Performance

For the full fiscal year 2024, ePlus Inc. reported a 7.6% increase in consolidated net sales to $2,225.3 million. However, the annual net earnings saw a slight decrease of 3.0% to $115.8 million. The company's adjusted EBITDA remained relatively stable with a minor decrease of 0.1% to $190.4 million.

Future Outlook

Looking ahead, ePlus Inc. remains optimistic about its future performance, expecting a return to normal product margin ranges and continued growth in high-margin services. The company plans to continue investing in customer-facing headcount and acquisitions to strengthen its market position and capture future opportunities.