ePlus Q4 net sales, dividend rise
ePlus Q4 net sales, dividend rise
Overview
Technology solutions provider's fiscal Q4 net sales rose 20.6% yr/yr
Adjusted EPS for fiscal Q4 rose 44.9% yr/yr
Company raised quarterly dividend 8% to $0.27 per share
Outlook
ePlus expects mid-single digit percentage growth in net sales, gross profit and adjusted EBITDA for FY 2027
Company says FY 2027 guidance excludes potential recessionary conditions or other unexpected developments
ePlus cites solid industry fundamentals and strong financial position supporting growth for the coming year
Result Drivers
PRODUCT SALES GROWTH - Higher sales of networking, cloud, security, and collaboration products drove Q4 net sales increase
PRODUCT MIX SHIFT - Gross margin declined due to a shift in product mix and a decrease in the proportion of sales recorded on a net basis
CLOUD SERVICES DEMAND - Managed services revenue and gross profit rose, mainly due to additional revenue from cloud services
Company press release: ID:nPn1WCRDta
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q4 Net sales |
| $576.20 mln | $569.25 mln (2 Analysts) |
Q4 Adjusted EBITDA |
| $40.10 mln | $41.85 mln (2 Analysts) |
Q4 Gross Margin |
| 24.60% |
|
Q4 Gross Profit |
| $141.60 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 $115.00, about 28.9% above its May 27 closing price of $89.19
The stock recently traded at 16 times the next 12-month earnings vs. a P/E of 18 three months ago
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(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.)