Why ePlus Stock Soared on Friday
Key Points
It notched a beat-and-raise fiscal second quarter.
It's also modeling double-digit increases in key fundamentals for the full fiscal year.
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A fiscal 2026 second quarter that crushed analyst estimates was the impetus behind the rally in corporate-focused tech solutions provider ePlus (NASDAQ: PLUS) on the last trading day of this week. Investors rewarded the company by pushing the stock's price nearly 16% higher that trading session, obliterating the 0.1% gain of the S&P 500 index.
Crossing the $1 billion mark
In the quarter, ePlus reaped consolidated net sales of just under $609 million for a bulky year-over-year improvement of 23%. That was on the back of gross billings that flew 27% higher to a shade over $1.02 billion. Net income according to generally accepted accounting principles (GAAP) almost doubled to over $38 million; on a per-share, non-GAAP (adjusted) basis, they rose 63% to $1.53.
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Those results surpassed the average analyst estimates for ePlus. Collectively, pundits following the company's stock were expecting its revenue to be less than $533 million for the period. They also significantly underestimated adjusted profitability, as their consensus was $1.23.
ePlus didn't hesitate to mention in its earnings release that it topped $1 billion in billings for the first time in its history. It quoted CEO Mark Marron as saying that "We continue to build momentum across our diversified end markets while maintaining disciplined cost management."
A double-digit future
Adding to the general bullishness about the trailing results, ePlus raised its guidance for the full fiscal year. It said that net sales should rise in the mid-teen percentages, and adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) are expected to increase at twice the rate of sales.
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Eric Volkman has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
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