ePlus stock touches 52-week low at $63.42 amid market challenges

Published 03/03/2025, 20:52
ePlus stock touches 52-week low at $63.42 amid market challenges

In a challenging market environment, ePlus Inc . (NASDAQ:PLUS) stock has reached its 52-week low, trading at $63.42. According to InvestingPro analysis, the company maintains solid financial health with a "Good" overall score, holding more cash than debt on its balance sheet. The technology solutions provider has faced a significant downturn over the past year, with its stock price reflecting a 1-year change of -21.62%. Investors are closely monitoring the company’s performance as it navigates through the headwinds that have pressured the tech sector, leading to a reevaluation of stock valuations across the board. The current price level presents a critical juncture for ePlus, as market participants consider the company’s future prospects and its ability to rebound from the recent lows. Technical indicators from InvestingPro suggest the stock is in oversold territory, with current metrics showing a healthy current ratio of 1.83 and strong free cash flow yield. Discover 8 more exclusive ProTips and comprehensive valuation analysis with an InvestingPro subscription.

In other recent news, ePlus reported its financial results for the fourth quarter of 2024, revealing a miss on both earnings and revenue forecasts. The company’s earnings per share came in at $1.06, falling short of the anticipated $1.46, while revenue reached $511 million against a forecast of $566.3 million. Despite the overall revenue shortfall, ePlus experienced significant growth in its services revenue, which rose by 52% year-over-year to $114 million. The company also launched new AI programs, indicating a focus on innovation within its product lineup. Additionally, ePlus’s gross profit increased by 5.3% to $140.9 million, although adjusted EBITDA decreased to $39.2 million from $46.2 million in the previous year. Looking ahead, ePlus projects fiscal 2025 revenue between $2.070 billion and $2.110 billion, with adjusted EBITDA forecasted at $165 million to $171 million. The company anticipates continued softness in product sales but expects improvements in the first quarter of 2025. Analyst firm William Blair participated in the earnings call, raising questions about the ongoing shift toward subscription-based revenue models and their potential impact.

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