NASDAQ$PLUS

ePlus Inc · Q4 2020 earnings

Q4 2020 earnings · · Investor relations

Briefing

ePlus's Q4 performance was solid across key metrics, maintaining a strong balance sheet and liquidity position.

ePlus reported a 12.6% increase in net sales to $366.5 million, with technology segment net sales up 12.8% and service revenues up 8.6%. Adjusted EBITDA increased 20.0% to $23.5 million, while diluted earnings per share decreased to $0.99, and non-GAAP diluted earnings per share increased to $1.24.

  • Net sales increased 12.6% to $366.5 million.
  • Technology segment net sales increased 12.8% to $353.3 million.
  • Adjusted EBITDA increased 20.0% to $23.5 million.
  • Non-GAAP diluted earnings per share increased 20.4% to $1.24.

Headline financials

Total Revenue

$366M

Previous: $325M+12.6%
EPS (adj)

$0.62

Previous: $0.52+19.2%
Adjusted EBITDA

$23.5M

No prior period
Net Income

$13.2M

Previous: $15.1M-12.0%
Operating Income

$17.9M

Previous: $14.5M+23.6%
Gross Profit

$91.8M

Previous: $81.3M+13.0%
Cash & Equivalents

$86.2M

Previous: $79.8M+8.0%
Total Assets

$909M

Previous: $786M+15.6%
Stock-Based Comp

$1.94M

Previous: $1.83M+6.0%

Revenue & EPS history

ePlus · Revenue · Quarterly

$366M

Q4 2020+12.6%vs Q4 2019
Beat estimate in 12 of 16 quarters(75%)
ActualEstimate

Forward guidance

ePlus is well positioned in the marketplace to provide digital infrastructure, cloud, and security solutions required by its customers, focusing on expanding services and innovating offerings to support remote workforces and secure customer infrastructure.

Tailwinds

  • Strong balance sheet and resilient business model.
  • Continuing to innovate and develop offerings which support remote workforces.
  • Securing and optimizing customer’s network, data, cloud, and collaboration infrastructure.
  • Well-positioned to support the next phase of IT evolution.
  • Expanding services, including managed and helpdesk services, and cloud hosted offerings.

Headwinds

  • The future is difficult to predict given the substantial impact of the pandemic on the overall economy.
  • Delayed or cancelled orders were mostly offset by new pandemic-related revenues, however the future is difficult to predict given the substantial impact of the pandemic on the overall economy.
  • Minimal exposure to the hardest-hit industries.
  • The duration and impact of the 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 exposure to fluctuation in foreign currency rates, interest rates and downward pressure on prices.

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 Q4 2020

Historical avgQ4 2020

+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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