In the fourth quarter, ePlus (PLUS, Financial) reported a decline in revenue, posting $498.1 million compared to $554.5 million in the same period last year. Despite this drop, the company achieved significant growth in several key areas, including gross profit, net earnings, and earnings per share (EPS). According to Mark Marron, president and CEO of ePlus, the company is benefiting from industry shifts towards ratable and subscription revenue models. This trend is enhancing their gross to net percentage and promises long-term visibility and profitability.
The company's services revenue saw impressive increases, rising 33% in the quarter and 37% for the entire year. This growth has contributed to substantial expansions in gross margin. Through both organic growth and strategic acquisitions, ePlus is broadening its reach in diverse end markets driven by long-term demand, such as artificial intelligence, cybersecurity, and cloud technologies.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 1 analysts, the average target price for ePlus Inc (PLUS, Financial) is $77.00 with a high estimate of $77.00 and a low estimate of $77.00. The average target implies an upside of 17.22% from the current price of $65.69. More detailed estimate data can be found on the ePlus Inc (PLUS) Forecast page.
Based on the consensus recommendation from 1 brokerage firms, ePlus Inc's (PLUS, Financial) average brokerage recommendation is currently 1.0, indicating "Buy" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for ePlus Inc (PLUS, Financial) in one year is $66.69, suggesting a upside of 1.52% from the current price of $65.69. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the ePlus Inc (PLUS) Summary page.
