NASDAQ$PLUS

ePlus Inc · Q4 2021 earnings

Q4 2021 earnings · · Investor relations

Briefing

ePlus reported Q4 2021 earnings, demonstrating resilience of business model.

ePlus inc. reported a decrease in net sales by 3.8% to $352.6 million, but net earnings increased by 17.4% to $15.6 million. Diluted earnings per share increased by 17.2% to $1.16, and non-GAAP diluted earnings per share increased by 13.7% to $1.41. The company's gross profit increased by 6.6% to $97.9 million, with a gross margin of 27.8%.

  • Net sales decreased 3.8% to $352.6 million; technology segment net sales decreased 6.1% to $331.8 million; service revenues increased 8.2% to $52.9 million.
  • Consolidated gross profit increased 6.6% to $97.9 million; gross margin was 27.8%, an increase of 270 basis points.
  • Net earnings increased 17.4% to $15.6 million and diluted earnings per share increased 17.2% to $1.16.
  • Adjusted EBITDA increased 25.7% to $29.6 million.

Headline financials

Total Revenue

$353M

Previous: $366M-3.8%
EPS (adj)

$0.71

Previous: $0.62+14.5%
Adjusted EBITDA

$29.6M

Previous: $23.5M+26.0%
Net Income

$15.6M

Previous: $13.2M+17.8%
Operating Income

$23.6M

Previous: $17.9M+32.0%
Gross Profit

$97.9M

Previous: $91.8M+6.6%
Cash & Equivalents

$130M

Previous: $86.2M+50.3%
Total Assets

$1.08B

Previous: $909M+18.4%
Stock-Based Comp

$1.74M

Previous: $1.94M-10.0%

Revenue & EPS history

ePlus · Revenue · Quarterly

$353M

Q4 2021-3.8%vs Q4 2020
Beat estimate in 12 of 16 quarters(75%)
ActualEstimate

Forward guidance

ePlus expects accelerated demand for collaboration, remote work solutions, security, and cloud services and remains positive in its outlook for fiscal 2022.

Tailwinds

  • Expect to see accelerated demand for collaboration solutions.
  • Expect to see accelerated demand for remote work solutions.
  • Expect to see accelerated demand for security solutions.
  • Expect to see accelerated demand for cloud services.
  • Focus on high growth areas critical to customers’ digital transformation initiatives.

Headwinds

  • Component shortages may delay some near-term revenue.
  • Duration and impact of the COVID-19 pandemic.
  • National and international political instability.
  • Reduction of vendor incentive programs.
  • Restrictions on access to capital.

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 2021

Historical avgQ4 2021

+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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