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Sep 30, 2021
ePlus Q2 2022 Earnings Report
Reported strong financial results driven by substantial operating leverage and the continued success of its growth strategy.
Key Takeaways
ePlus inc. reported a strong second quarter for fiscal year 2022, with net sales increasing by 5.8% to $458.0 million and net earnings increasing by 58.3% to $31.4 million. The company's growth was fueled by its technology solutions and financing segments, with services remaining one of the fastest-growing areas.
Net sales increased 5.8% to $458.0 million; technology segment net sales increased 4.0% to $436.3 million; service revenues increased 23.1% to $60.9 million.
Adjusted gross billings increased 10.5% to $664.1 million.
Net earnings increased 58.3% to $31.4 million.
Diluted earnings per share increased 58.1% to $2.34. Non-GAAP diluted earnings per share increased 54.2% to $2.59.
Forward Guidance
ePlus is well-positioned for continued growth, with the products, services, financing, and expertise that enable customers to meet the challenges of digital transformation and modernization.
Positive Outlook
- Data center, security and cloud-focused solutions remain especially timely and relevant.
- Investments in emerging areas, including collaboration and AI, provide new opportunities for growth.
- Strength of open orders and backlog, both of which have increased significantly during the year.
- Team and channel partners have performed admirably in navigating supply chain challenges to date.
- ePlus remains committed to investing in its people and in its capabilities to stay on the forefront of technology trends.
Challenges Ahead
- Continue to closely monitor constraints within the supply chain that may limit future product availability.
- The duration and impact of the ongoing COVID-19 pandemic could materially adversely affect our financial condition and results of operations
Historical Earnings Impact
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Avg. Return Before/After Earnings
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