ePlus Inc. Reports Strong Q4 Earnings, Misses Revenue Expectations

ePlus Inc. (PLUS) posted a strong profit for Q4, beating EPS estimates. However, revenue fell 10.2% year-over-year, which may lead to mixed investor reactions. The bottom line totaled $25.20 million, or $0.95 per share, exceeding expectations.

Date: 23-05-2025

AI Rating: 6

Earnings Per Share (EPS)
ePlus Inc. reported an EPS of $0.95 for the fourth quarter, an increase from $0.82 from the same period last year. This represents a solid year-over-year improvement and an outperformance against analysts' expectations of $0.87. The adjusted earnings further highlight the company's ability to manage expenses and achieve higher profitability, with adjusted EPS reported at $1.11.

Revenue Growth
The company's revenue for the period decreased by 10.2%, from $554.461 million last year to $498.114 million. This decline in revenue is a significant concern as it indicates losing market traction or potentially reduced demand for their products/services.

Net Income
Net income increased to $25.20 million from $21.96 million last year, which is a positive indicator of the company's fundamental profitability. Growth in net income alongside EPS increase suggests effective management of costs.

Profit Margins
While specific margin rates are not reported, the improved net income with decreasing revenues suggests the company may be improving its operational efficiency even amidst declining sales.

Rating Summary
The EPS growth is strongly positive with a rating of 8, reflecting a strong profit trajectory and exceeding expectations. However, the revenue decline earns a rating of 4, indicating a concerning drop that may overshadow the positive earnings figures in the near term. The mixed signals could lead investors to take a cautious approach in the short term.

Stocks: PLUS