ePlus Q4 2021 Earnings Report
Key Takeaways
ePlus inc. reported a decrease in net sales by 3.8% to $352.6 million, but net earnings increased by 17.4% to $15.6 million. Diluted earnings per share increased by 17.2% to $1.16, and non-GAAP diluted earnings per share increased by 13.7% to $1.41. The company's gross profit increased by 6.6% to $97.9 million, with a gross margin of 27.8%.
Net sales decreased 3.8% to $352.6 million; technology segment net sales decreased 6.1% to $331.8 million; service revenues increased 8.2% to $52.9 million.
Consolidated gross profit increased 6.6% to $97.9 million; gross margin was 27.8%, an increase of 270 basis points.
Net earnings increased 17.4% to $15.6 million and diluted earnings per share increased 17.2% to $1.16.
Adjusted EBITDA increased 25.7% to $29.6 million.
ePlus
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ePlus Revenue by Segment
Forward Guidance
ePlus expects accelerated demand for collaboration, remote work solutions, security, and cloud services and remains positive in its outlook for fiscal 2022.
Positive Outlook
- Expect to see accelerated demand for collaboration solutions.
- Expect to see accelerated demand for remote work solutions.
- Expect to see accelerated demand for security solutions.
- Expect to see accelerated demand for cloud services.
- Focus on high growth areas critical to customers’ digital transformation initiatives.
Challenges Ahead
- Component shortages may delay some near-term revenue.
- Duration and impact of the COVID-19 pandemic.
- National and international political instability.
- Reduction of vendor incentive programs.
- Restrictions on access to capital.
Revenue & Expenses
Visualization of income flow from segment revenue to net income