ePlus Inc

PLUS

Equity

ISIN US2942681071 / Valor 1013462

NASDAQ (2024-11-20)

USD 80.72+1.50%

ePlus Inc
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About company

ePlus Inc. is a technology solutions provider that has been operating since 1990, offering a broad range of services including financing and leasing options to help organizations manage their technology investments. The company serves a diverse clientele across commercial and government sectors in the US, UK, Europe, and Asia-Pacific. ePlus specializes in delivering tailored financing solutions that align with the unique needs and structures of its customers. Additionally, the company provides global engineering expertise and 24/7 managed services through its Managed Services Centers, ensuring continuous support and implementation assistance. ePlus aims to help organizations modernize and secure their digital infrastructure, focusing on practical approaches to achieve significant business and technology outcomes.

Summarized from source with an LLMView SourceSector: Technology

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.

Summarized from source with an LLMView Source

Key figures

29.4%1Y

40.3%3Y

93.0%5Y

Performance

35.6%1Y

35.8%3Y

40.5%5Y

Volatility