IT solutions provider ePlus (NASDAQ:PLUS) will be announcing earnings results tomorrow after market hours. Here’s what to expect.
ePlus missed analysts’ revenue expectations by 7.7% last quarter, reporting revenues of $511 million, flat year on year. It was a disappointing quarter for the company, with a significant miss of analysts’ EPS estimates.
Is ePlus a buy or sell going into earnings? Read our full analysis here, it’s free.
This quarter, analysts are expecting ePlus’s revenue to decline 5.5% year on year to $523.9 million, a reversal from the 12.7% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.87 per share.
Analysts covering the company have generally 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 four 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. Connection delivered year-on-year revenue growth of 10.9%, beating analysts’ expectations by 8.5%, and CDW reported revenues up 6.7%, topping estimates by 5.3%. Connection traded up 7% following the results while CDW was also up 9.8%.
Read our full analysis of Connection’s results here and CDW’s results here.
There has been positive sentiment among investors in the it distribution & solutions segment, with share prices up 14.5% on average over the last month. ePlus is up 9.3% during the same time and is heading into earnings with an average analyst price target of $77 (compared to the current share price of $65.71).
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