NASDAQ$PLUS

ePlus Inc · Q2 2023 earnings

Q2 2023 earnings · · Investor relations

Briefing

ePlus reported second quarter results with sales growth driven by demand for security, modern data center, and networking solutions.

ePlus inc. reported a 7.8% increase in net sales to $493.7 million and an 8.4% increase in consolidated gross profit to $133.3 million. However, net earnings decreased by 9.4% to $28.5 million, and diluted earnings per share decreased by 8.5% to $1.07. The company's adjusted EBITDA saw a slight increase of 0.2% to $50.3 million.

  • Net sales increased by 7.8% to $493.7 million.
  • Consolidated gross profit increased by 8.4% to $133.3 million.
  • Net earnings decreased by 9.4% to $28.5 million.
  • Diluted earnings per share decreased 8.5% to $1.07.

Headline financials

Total Revenue

$494M

Previous: $458M+7.8%
EPS (adj)

$1.29

Previous: $1.30-0.8%
Adjusted EBITDA

$50.3M

Previous: $50.2M+0.2%
Net Income

$28.5M

Previous: $31.4M-9.4%
Operating Income

$44.1M

Previous: $44.3M-0.4%
Gross Profit

$133M

Previous: $123M+8.4%
Cash & Equivalents

$99.5M

Previous: $57M+74.8%
Total Assets

$1.37B

Previous: $1.14B+20.3%
Stock-Based Comp

$1.96M

Previous: $1.84M+6.4%

Revenue & EPS history

ePlus · Revenue · Quarterly

$494M

Q2 2023+7.8%vs Q2 2022
Beat estimate in 8 of 15 quarters(53%)
ActualEstimate

Forward guidance

ePlus is confident in its ability to capture IT spend despite economic uncertainties, citing strong open orders and backlog, though supply chain constraints remain a persistent challenge.

Tailwinds

  • Well positioned to capture IT spend.
  • Open orders remain strong.
  • Backlog remains strong.
  • Leveraging extensive vendor network.
  • Offering innovative alternative solutions.

Headwinds

  • Subject to supply chain constraints.
  • Supply chain constraints affect product revenues.
  • Supply chain constraints affect services revenues.
  • Broader economic uncertainties.
  • Persistent supply chain challenges.

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 2023

Historical avgQ2 2023

+1.3%

Avg return

Earnings day

+1.4%

Avg return

5 days after

+2.0%

Avg return

30 days after

59%

38 / 64 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
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%
Q2 2011+1.8%
Q3 2012+1.8%
Q3 2011+1.8%
Q2 2012+1.6%
Q4 2011+0.0%
Q1 2012+0.0%
Q1 2011+0.0%

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