Overview

* ePlus fiscal Q1 net sales rise 19%, beating analyst expectations

* Adjusted EPS for fiscal Q1 increases 24.8%, exceeding analyst estimates

* Co announces first quarterly dividend and new stock repurchase program

Outlook

* ePlus forecasts fiscal year 2026 net sales growth in upper single digits

* Company expects fiscal year 2026 gross profit growth in upper single digits

* ePlus sees fiscal year 2026 adjusted EBITDA growth in mid-teens

Result Drivers

* SERVICES REVENUE - Services segment saw a 48.8% increase, driven by the acquisition of Bailiwick Services, LLC

* PRODUCT SALES - Higher cloud and security product sales contributed to a 13.9% increase in product segment sales

* FINANCING BUSINESS SALE - Sale of domestic financing business enhanced capital position and strategic focus, per CEO Mark Marron

Key Details

Metric Beat/Mis Actual Consensu

s s

Estimate

Q1 Net Beat $637.30 $516.70

sales mln mln (2

Analysts

)

Q1 Beat $1.26 $1.17 (1

Adjusted Analyst)

EPS

Q1 Beat $46.70 $43.10

Adjusted mln mln (2

EBITDA Analysts

)

Q1 Gross 23.3%

Margin

Q1 Gross $148.20

Profit mln

Analyst Coverage

* The one available analyst rating on the shares is "strong buy"

* The average consensus recommendation for the it services & consulting peer group is "buy."

* Wall Street's median 12-month price target for ePlus inc ( PLUS ) is $92.00, about 30.9% above its August 6 closing price of $63.60

* The stock recently traded at 13 times the next 12-month earnings vs. a P/E of 14 three months ago

Press Release:

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)