NASDAQ$PLUS

ePlus Inc · Q4 2022 earnings

Q4 2022 earnings · · Investor relations

Briefing

Reported robust sales growth driving significant gains in operating income and earnings.

ePlus reported a strong fourth quarter and fiscal year 2022, with net sales increasing by 28.1% to $451.5 million and net earnings increasing by 55.9% to $24.2 million in Q4. The company's technology segment and service revenues also saw significant growth. Diluted earnings per share increased to $0.91, and non-GAAP diluted earnings per share increased to $1.01.

  • Net sales increased 28.1% to $451.5 million; technology segment net sales increased 26.4% to $419.4 million; service revenues increased 16.6% to $61.6 million.
  • Adjusted gross billings increased 20.8% to $638.5 million.
  • Net earnings increased 55.9% to $24.2 million.
  • Diluted earnings per share increased 56.9% to $0.91. Non-GAAP diluted earnings per share increased 42.3% to $1.01.

Headline financials

Total Revenue

$452M

Previous: $353M+28.1%
EPS (adj)

$1.01

Previous: $0.71+42.3%
Adjusted EBITDA

$39.7M

Previous: $29.6M+34.1%
Net Income

$24.2M

Previous: $15.6M+55.1%
Operating Income

$34.5M

Previous: $23.6M+46.2%
Gross Profit

$115M

Previous: $97.9M+17.9%
Cash & Equivalents

$155M

Previous: $130M+19.9%
Total Assets

$1.17B

Previous: $1.08B+8.3%
Stock-Based Comp

$1.76M

Previous: $1.74M+1.0%

Revenue & EPS history

ePlus · Revenue · Quarterly

$452M

Q4 2022+28.1%vs Q4 2021
Beat estimate in 12 of 16 quarters(75%)
ActualEstimate

Forward guidance

ePlus believes the outlook for IT spending in 2022 remains favorable, positioning the company for continued growth. Lead times are extending for certain technologies, which is anticipated to extend project implementations throughout the year. The company continues to work closely with its technology partners to deliver timely, innovative solutions.

Tailwinds

  • Solid momentum entering fiscal year 2023.
  • Strength of backlog.
  • Healthy market fundamentals as enterprise technology investments remain a top priority.
  • Successful execution of growth strategy.
  • Expanding market share by strengthening relationships with existing customers and leveraging expertise across the technology stack.

Headwinds

  • Lead times are extending for certain technologies.
  • This is anticipated to extend project implementations throughout the year.

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 2022

Historical avgQ4 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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