ePlus inc. Earnings Missed Analyst Estimates: Here's What Analysts Are Forecasting Now
As you might know, ePlus inc. (NASDAQ:PLUS) last week released its latest quarterly, and things did not turn out so great for shareholders. Earnings fell badly short of analyst estimates, with US$509m revenues missing by 14%, and statutory earnings per share (EPS) of US$1.02 falling short of forecasts by some -19%. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.
View our latest analysis for ePlus
Following the latest results, ePlus' three analysts are now forecasting revenues of US$2.32b in 2025. This would be an okay 7.0% improvement in revenue compared to the last 12 months. Statutory per share are forecast to be US$4.85, approximately in line with the last 12 months. Yet prior to the latest earnings, the analysts had been anticipated revenues of US$2.35b and earnings per share (EPS) of US$4.92 in 2025. The consensus analysts don't seem to have seen anything in these results that would have changed their view on the business, given there's been no major change to their estimates.
The analysts reconfirmed their price target of US$78.00, showing that the business is executing well and in line with expectations. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. There are some variant perceptions on ePlus, with the most bullish analyst valuing it at US$86.00 and the most bearish at US$70.00 per share. Still, with such a tight range of estimates, it suggeststhe analysts have a pretty good idea of what they think the company is worth.
Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. We would highlight that ePlus' revenue growth is expected to slow, with the forecast 5.6% annualised growth rate until the end of 2025 being well below the historical 10.0% p.a. growth over the last five years. Compare this to the 193 other companies in this industry with analyst coverage, which are forecast to grow their revenue at 5.4% per year. Factoring in the forecast slowdown in growth, it looks like ePlus is forecast to grow at about the same rate as the wider industry.
The Bottom Line
The most obvious conclusion is that there's been no major change in the business' prospects in recent times, with the analysts holding their earnings forecasts steady, in line with previous estimates. They also reconfirmed their revenue estimates, with the company predicted to grow at about the same rate as the wider industry. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.
Following on from that line of thought, we think that the long-term prospects of the business are much more relevant than next year's earnings. At Simply Wall St, we have a full range of analyst estimates for ePlus going out to 2026, and you can see them free on our platform here..
Another thing to consider is whether management and directors have been buying or selling stock recently. We provide an overview of all open market stock trades for the last twelve months on our platform, here.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
