NASDAQ$PLUS

ePlus Inc · Q2 2021 earnings

Q2 2021 earnings · · Investor relations

Briefing

Revenue increased due to higher product sales and managed services, but gross profit and earnings decreased.

ePlus inc. reported a 5.2% increase in net sales to $433.1 million for the second quarter of fiscal year 2021. Technology segment net sales increased 5.4% to $419.4 million, while service revenues increased 2.8% to $49.4 million. Net earnings decreased 1.3% to $19.8 million, and diluted earnings per share decreased 2.0% to $1.48. Non-GAAP diluted earnings per share decreased 7.2% to $1.68.

  • Net sales increased by 5.2% to $433.1 million.
  • Technology segment net sales increased by 5.4% to $419.4 million.
  • Service revenues increased by 2.8% to $49.4 million.
  • Net earnings decreased by 1.3% to $19.8 million.

Headline financials

Total Revenue

$433M

Previous: $412M+5.2%
EPS (adj)

$0.84

Previous: $0.91-7.7%
Adjusted EBITDA

$33.6M

Previous: $35.4M-5.1%
Consolidated Gross Margin

22.9%

Previous: 25.0%-8.4%
Net Income

$19.8M

Previous: $20.1M-1.3%
Operating Income

$28.5M

Previous: $28.4M+0.4%
Gross Profit

$99M

Previous: $103M-3.9%
Cash & Equivalents

$161M

Previous: $55.8M+188.5%
Total Assets

$1.04B

Previous: $914M+13.6%
Stock-Based Comp

$1.76M

Previous: $2.14M-17.4%

Revenue & EPS history

ePlus · Revenue · Quarterly

$433M

Q2 2021+5.2%vs Q2 2020
Beat estimate in 12 of 16 quarters(75%)
ActualEstimate

Forward guidance

ePlus believes it is well positioned to continue to effectively and efficiently serve its diversified customer base. The portfolio of Technology and Financing businesses represents a competitive advantage for ePlus.

Tailwinds

  • Broad portfolio of products and services directed to high growth areas.
  • More streamlined operation.
  • Technology and Financing businesses represent a competitive advantage.
  • Increase in demand for financing from several customers.
  • Strong balance sheet provides capital to invest in organic and inorganic growth opportunities.

Headwinds

  • Challenging and uncertain economic periods.
  • Customers managing through budgetary constraints.
  • Monitoring the landscape for attractive opportunities.
  • Difficult business conditions.
  • The duration and impact of the COVID-19 pandemic

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 19 quarterly earnings reports · overlaid with Q2 2021

Historical avgQ2 2021

+1.2%

Avg return

Earnings day

+1.1%

Avg return

5 days after

+2.0%

Avg return

30 days after

58%

38 / 65 earnings

Positive

+21.8%

Q2 2016

Best reaction

-23.0%

Q2 2018

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q4 2026-7.3%-9.3%
Q3 2026-1.7%+0.3%-9.4%
Q2 2026+15.5%+24.8%+22.4%
Q1 2026+9.5%+17.0%+11.9%
Q4 2025+2.0%+7.1%+9.3%
Q3 2025-13.1%-14.7%-19.0%
Q2 2025-17.9%-19.3%-19.5%
Q1 2025+6.9%+9.1%+13.0%
Q4 2024-0.4%-1.7%-7.8%
Q3 2024-12.0%-2.4%+3.5%
Q2 2024-9.3%-7.3%+5.2%
Q1 2024+14.4%+13.5%+12.9%
Q4 2023+4.9%+7.4%+15.5%
Q3 2023+8.3%+5.5%-3.2%
Q2 2023+3.4%+4.7%+2.9%
Q1 2023-13.5%-13.2%-17.3%
Q4 2022+2.8%+2.4%-1.1%
Q3 2022+0.1%+1.0%+11.1%
Q2 2022+6.2%+0.4%-6.9%
Q1 2022+6.7%+7.4%+18.2%
Q4 2021-5.4%-3.2%-12.1%
Q3 2021+6.8%+7.2%+14.6%
Q2 2021+5.0%+7.3%+21.8%
Q1 2021+0.5%+2.8%-0.1%
Q4 2020+6.8%+5.8%-2.6%
Q3 2020+7.3%+1.6%-11.7%
Q2 2020+20.7%+10.9%+5.6%
Q1 2020+13.9%+9.1%+13.4%
Q4 2019-19.7%-16.5%-22.1%
Q3 2019+4.9%+4.8%+10.6%
Q2 2019-5.1%-5.3%-13.0%
Q1 2019-4.0%-5.9%-1.2%
Q4 2018-1.4%+1.9%+6.3%
Q3 2018-8.3%-6.1%+7.2%
Q2 2018-23.0%-22.3%-18.7%
Q1 2018+7.8%+2.9%+1.0%
Q4 2017+5.0%+3.7%+0.3%
Q3 2017+6.4%+8.7%+14.7%
Q2 2017+7.6%+5.1%+22.9%
Q1 2017-2.0%-0.7%+6.8%
Q4 2016+0.7%+1.1%-3.6%
Q3 2016-17.0%
Q2 2016+21.8%
Q1 2016+4.8%
Q4 2015-9.7%
Q3 2015+18.2%
Q2 2015+19.0%
Q1 2015+5.8%
Q4 2014-0.8%
Q3 2014+9.2%
Q2 2014-0.8%
Q1 2014-7.8%
Q4 2013-3.1%
Q3 2013+1.2%
Q2 2013-5.0%
Q4 2012-2.9%
Q1 2013+1.4%
Q4 2010+4.2%
Q3 2012+1.8%
Q2 2011+1.8%
Q3 2011+1.8%
Q2 2012+1.6%
Q1 2011+0.0%
Q4 2011+0.0%
Q1 2012+0.0%

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