ePlus Q1 net sales inch up, helped by managed services growth
ePlus Q1 net sales inch up, helped by managed services growth
Overview
US technology solutions provider's fiscal Q1 net sales rose 1% yr/yr
Adjusted EBITDA for fiscal Q1 fell 9.2% yr/yr
Company authorized new buyback program for up to 1.5 mln shares
Outlook
ePlus reiterates fiscal 2027 guidance for mid-single digit growth in net sales, gross profit, adjusted EBITDA
Company guidance excludes recessionary conditions or other unexpected developments
ePlus says strong open orders and expansion in AI, data centers, cybersecurity support outlook
Result Drivers
MANAGED SERVICES GROWTH - Managed services revenue rose 15.1%, driven by additional cloud managed services, with the segment delivering its first $50 mln revenue quarter
PRODUCT MIX SHIFT - Product segment gross profit margin declined due to a shift in product mix and a lower proportion of sales from third-party maintenance and subscriptions, which are recorded on a net basis
SUPPLY CHAIN DELAYS - Product shipment delays and extended lead times continued due to the ongoing memory chip shortage
Company press release: ID:nPn2McMXra
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q1 Net sales | Beat | $649.10 mln | $639.96 mln (2 Analysts) |
Q1 Adjusted EBITDA | Beat | $47.80 mln | $45.95 mln (2 Analysts) |
Q1 Gross Margin |
| 23.30% |
|
Q1 Gross Profit |
| $151.30 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 $111.00, about 18.5% above its August 3 closing price of $93.66
The stock recently traded at 16 times the next 12-month earnings vs. a P/E of 15 three months ago
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For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.
(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)