Eplus Inc Down 12.74% To $55.84 After Earnings Beat

ePlus inc (PLUS) surpassed earnings projections on 11/7/2023 for Q2 2024.

The consensus among analysts for Eplus Inc was for an earnings per share (EPS) of $1.34. The firm was able to surpass those projections, reporting an EPS of $1.40, a positive surprise of $0.06 (4%). Profits rose 9% year-over-year after reporting an EPS of $1.29 in its year-ago quarter. The positive growth rate signals that the Technology company is performing well amid recent economic conditions.

Consensus estimates for Eplus Inc revenue averaged out to $561.4 million, with the business managing to beat those expectations with reported second-quarter revenue of $587.6 million. The $26.2 million (5%) positive revenue surprise led to 19% growth year-over-year as the firm reported revenue of $493.7 million in its year-ago quarter. The lower earnings growth compared to revenue points to Eplus Inc not being able to improve its profit margin.

The stock is down 12.74% to $55.84 after the report.

The firm's higher revenue growth to earnings signals that the firm has not been able to reduce costs and has seen its profit margin decrease.

Wall Street Analysts had an average rating of Buy on the stock prior to the report.

InvestorsObserver gives the stock a Bullish Sentiment score at the moment based on recent trading.

Prior to the report, InvestorsObserver gave the stock an overall score of 59. Meanwhile, the average Wall Street analyst rated the stock a Buy.

ePlus Inc is a holding company. ePlus through its subsidiaries provides information technology solutions. The company's technology solutions enable organizations to optimize their IT environment and supply chain processes. It also provides consulting, professional and managed services, and complete lifecycle management services including flexible financing solutions. ePlus focuses on selling to medium and large enterprises in the United States and to customers in select international markets including the United Kingdom, the European Union, India, Singapore, and Israel.