NASDAQ$PLUS

ePlus Inc · Q3 2022 earnings

Q3 2022 earnings · · Investor relations

Briefing

Reported double-digit growth in sales, gross profit, and operating income.

ePlus reported a strong third quarter with a 15.7% increase in net sales to $494.8 million, driven by consistent execution and strong demand for services and solutions. Net earnings increased by 22.1% to $26.4 million, and operating income increased by 23% reflecting the scalability of their business model.

  • Net sales increased 15.7% to $494.8 million; technology segment net sales increased 14.8% to $477.0 million; service revenues increased 20.0% to $62.5 million.
  • Adjusted gross billings increased 16.5% to $685.0 million.
  • Gross profit increased 19.3% to $117.1 million; gross margin was 23.7%, an increase of 70 basis points.
  • Net earnings increased 22.1% to $26.4 million; diluted earnings per share increased 21.0% to $0.98; Non-GAAP diluted earnings per share increased 23.6% to $1.10.

Headline financials

Total Revenue

$495M

Previous: $428M+15.7%
EPS (adj)

$1.10

Previous: $0.90+22.2%
Adjusted EBITDA

$41.8M

Previous: $34.4M+21.5%
Net Income

$26.4M

Previous: $21.6M+22.1%
Operating Income

$36.1M

Previous: $29.3M+23.3%
Gross Profit

$117M

Previous: $98.2M+19.3%
Cash & Equivalents

$106M

Previous: $86.5M+22.1%
Total Assets

$1.26B

Previous: $1.13B+11.5%
Stock-Based Comp

$1.78M

Previous: $1.78M+0.1%

Revenue & EPS history

ePlus · Revenue · Quarterly

$495M

Q3 2022+15.7%vs Q3 2021
Beat estimate in 12 of 16 quarters(75%)
ActualEstimate

Forward guidance

ePlus is positioned for continued growth, supported by their global team, vendor relationships, and business model. They remain an essential partner for customers adapting their IT infrastructure. The company continues to invest in people and capabilities, with a strong balance sheet that offers flexibility for strategic acquisitions.

Tailwinds

  • Talented and dedicated global team supporting growth.
  • Extensive network of vendor relationships.
  • Differentiated business model serving the entire IT lifecycle.
  • Essential partner for customers adapting IT infrastructure.
  • Strong balance sheet offers flexibility for strategic acquisitions.

Headwinds

  • Duration and impact of the ongoing COVID-19 pandemic.
  • National and international political instability.
  • Supply constraints of certain IT products, including constraints caused by shortages in semiconductors and other components.
  • Inflation of both wages and product costs.
  • Reduction of vendor incentive programs.

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 Q3 2022

Historical avgQ3 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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