IT solutions provider ePlus (NASDAQ: PLUS) will be reporting earnings this Thursday after market hours. Here’s what to expect.
ePlus beat analysts’ revenue expectations last quarter, reporting revenues of $614.8 million, up 24.6% year on year. It was an incredible quarter for the company, with a beat of analysts’ EPS estimates and an impressive beat of analysts’ revenue estimates.
Is ePlus a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, the market is expecting ePlus’s revenue to grow 14.3% year on year, a reversal from the 10.2% decrease it recorded in the same quarter last year.
The majority of analysts covering the company have reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. ePlus has missed Wall Street’s revenue estimates multiple times over the last two years.
Looking at ePlus’s peers in the it distribution & solutions segment, some have already reported their Q1 results, giving us a hint as to what we can expect. Avnet delivered year-on-year revenue growth of 33.9%, beating analysts’ expectations by 10.3%, and Connection reported revenues up 3%, topping estimates by 3.7%. Avnet traded up 5.4% following the results while Connection’s stock price was unchanged.
Read our full analysis of Avnet’s results here and Connection’s results here.
There has been positive sentiment among investors in the it distribution & solutions segment, with share prices up 6.6% on average over the last month. ePlus is up 3% during the same time and is heading into earnings with an average analyst price target of $115 (compared to the current share price of $86.92).
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