NASDAQ$PLUS

ePlus Inc · Q4 2023 earnings

Q4 2023 earnings · · Investor relations

Briefing

ePlus's Q4 2023 earnings reflected strong growth in net sales, gross profit, and earnings per share, driven by a focus on high-value end markets and strategic investments.

ePlus reported a strong fourth quarter with a 9.0% increase in net sales to $492.2 million and a 35.5% increase in net earnings to $32.9 million. Diluted earnings per share increased by 35.2% to $1.23, and non-GAAP diluted earnings per share increased by 34.7% to $1.36.

  • Net sales increased by 9.0% to $492.2 million, with technology segment net sales up 15.2% to $483.2 million.
  • Consolidated gross profit increased by 14.7% to $132.3 million, and gross margin improved to 26.9%.
  • Net earnings increased by 35.5% to $32.9 million, with diluted earnings per share at $1.23 and non-GAAP diluted earnings per share at $1.36.
  • The company's headcount increased by 177, with 140 customer-facing employees, including 84 in professional services and technical support.

Headline financials

Total Revenue

$492M

Previous: $452M+9.0%
EPS (adj)

$1.36

Previous: $1.01+34.7%
Adjusted EBITDA

$48.7M

Previous: $39.7M+22.6%
Net Income

$32.9M

Previous: $24.2M+35.8%
Operating Income

$42.4M

Previous: $34.5M+22.9%
Gross Profit

$132M

Previous: $115M+14.7%
Cash & Equivalents

$103M

Previous: $155M-33.7%
Total Assets

$1.41B

Previous: $1.17B+21.3%
Stock-Based Comp

$2.14M

Previous: $1.76M+21.9%

Revenue & EPS history

ePlus · Revenue · Quarterly

$492M

Q4 2023+9%vs Q4 2022
Beat estimate in 8 of 15 quarters(53%)
ActualEstimate

Forward guidance

Despite an uncertain economic environment, ePlus believes its portfolio is strongly aligned with customers' needs and remains committed to building long-term stakeholder value through organic growth, acquisitions, and operational efficiencies.

Tailwinds

  • Resilient business model and capabilities to deliver cost-effective technology solutions.
  • IT spending focused on solutions that drive growth, digital transformation, efficiencies, and cybersecurity.
  • Portfolio strongly aligned with customers’ needs.
  • Commitment to building long-term stakeholder value.
  • Consistent execution of growth strategy both organically and through acquisitions and generating further operational efficiencies.

Headwinds

  • Uncertain economic environment.
  • Ongoing remote work trends.
  • Increase in cybersecurity attacks while employees work remotely.
  • National and international political instability fostering uncertainty and volatility in the global economy.
  • Exposure to fluctuation in foreign currency rates, interest rates, and inflation.

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 2023

Historical avgQ4 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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