ePlus Q1 net sales inch up, helped by managed services growth
PLUS•Outlook
- ePlus reiterates fiscal 2027 guidance for mid-single digit growth in net sales, gross profit, adjusted EBITDA
- Company guidance excludes recessionary conditions or other unexpected developments
- ePlus says strong open orders and expansion in AI, data centers, cybersecurity support outlook
Overview
- US technology solutions provider's fiscal Q1 net sales rose 1% yr/yr
- Adjusted EBITDA for fiscal Q1 fell 9.2% yr/yr
- Company authorized new buyback program for up to 1.5 mln shares
Result Drivers
- Managed services growth - Managed services revenue rose 15.1%, driven by additional cloud managed services, with the segment delivering its first $50 mln revenue quarter
- Product mix shift - Product segment gross profit margin declined due to a shift in product mix and a lower proportion of sales from third-party maintenance and subscriptions, which are recorded on a net basis
- Supply chain delays - Product shipment delays and extended lead times continued due to the ongoing memory chip shortage
Key details and analyst coverage
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