NASDAQ$PLUS

ePlus Inc · Q2 2022 earnings

Q2 2022 earnings · · Investor relations

Briefing

Reported strong financial results driven by substantial operating leverage and the continued success of its growth strategy.

ePlus inc. reported a strong second quarter for fiscal year 2022, with net sales increasing by 5.8% to $458.0 million and net earnings increasing by 58.3% to $31.4 million. The company's growth was fueled by its technology solutions and financing segments, with services remaining one of the fastest-growing areas.

  • Net sales increased 5.8% to $458.0 million; technology segment net sales increased 4.0% to $436.3 million; service revenues increased 23.1% to $60.9 million.
  • Adjusted gross billings increased 10.5% to $664.1 million.
  • Net earnings increased 58.3% to $31.4 million.
  • Diluted earnings per share increased 58.1% to $2.34. Non-GAAP diluted earnings per share increased 54.2% to $2.59.

Headline financials

Total Revenue

$458M

Previous: $433M+5.8%
EPS (adj)

$1.30

Previous: $0.84+54.8%
Adjusted EBITDA

$50.2M

Previous: $33.6M+49.4%
Net Income

$31.4M

Previous: $19.8M+58.3%
Operating Income

$44.3M

Previous: $28.5M+55.5%
Gross Profit

$123M

Previous: $99M+24.3%
Cash & Equivalents

$57M

Previous: $161M-64.6%
Total Assets

$1.14B

Previous: $1.04B+9.7%
Stock-Based Comp

$1.84M

Previous: $1.76M+4.4%

Revenue & EPS history

ePlus · Revenue · Quarterly

$458M

Q2 2022+5.8%vs Q2 2021
Beat estimate in 12 of 16 quarters(75%)
ActualEstimate

Forward guidance

ePlus is well-positioned for continued growth, with the products, services, financing, and expertise that enable customers to meet the challenges of digital transformation and modernization.

Tailwinds

  • Data center, security and cloud-focused solutions remain especially timely and relevant.
  • Investments in emerging areas, including collaboration and AI, provide new opportunities for growth.
  • Strength of open orders and backlog, both of which have increased significantly during the year.
  • Team and channel partners have performed admirably in navigating supply chain challenges to date.
  • ePlus remains committed to investing in its people and in its capabilities to stay on the forefront of technology trends.

Headwinds

  • Continue to closely monitor constraints within the supply chain that may limit future product availability.
  • The duration and impact of the ongoing COVID-19 pandemic could materially adversely affect our financial condition and results of operations
  • National and international political instability fostering uncertainty and volatility in the global economy including an economic downturn, significant and rapid inflation, an increase in tariffs or adverse changes to trade agreements, exposure to fluctuation in foreign currency rates, interest rates and pressure on prices.
  • Supply constraints of certain IT products, including constraints caused by shortages in semiconductors and other components
  • Inflation of both wages and product costs

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 2022

Historical avgQ2 2022

+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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