HERNDON, Va. - ePlus inc. (NASDAQ:PLUS), a provider of technology and financing solutions, reported a miss in its fourth-quarter earnings per share (EPS) but exceeded revenue expectations.
The company announced adjusted EPS of $0.93, falling short of the analyst estimate of $1.11. However, revenue for the quarter was $554.5 million, surpassing the consensus estimate of $541.41 million.
The firm's fourth-quarter net sales saw a 12.7% increase compared to the same period last year, driven by a 12.6% rise in technology business net sales and a 14.8% climb in services revenues. Despite this growth, net earnings and adjusted EBITDA experienced declines of 33.1% and 24.4%, respectively. The company's gross margin also contracted from 26.9% to 23.5%, attributed to lower product margins, particularly due to a significant increase in sales to enterprise customers.
Mark Marron, president and CEO of ePlus, commented on the results, "We returned to double-digit revenue growth in the quarter to finish out a strong year... We experienced strong increases in gross billings in networking, cloud, and collaboration in the quarter, especially from enterprise customers within our telecom, media and entertainment, and finance end markets." Marron also noted a 15% increase in higher-margin services and expressed confidence in the company's cost management and future revenue growth prospects.
Looking ahead, ePlus has initiated its fiscal year 2025 guidance, anticipating net sales growth between 3% and 6%. The company expects adjusted EBITDA to range from $200.0 million to $215.0 million. Marron concluded with optimism about the company's position to meet customer needs and drive long-term shareholder value, highlighting ePlus's diversified market presence and strong balance sheet.
The company also announced a new share repurchase program, authorizing the repurchase of up to 1,250,000 shares over a 12-month period starting May 28, 2024. This program underscores ePlus's commitment to returning value to shareholders and confidence in the company's financial stability and future prospects.
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