Market Analysis by covering: G-III Apparel Group Ltd, ePlus inc, Carnival Corporation, Tutor Perini Corporation. Read 's Market Analysis on Investing.com ...

Company Overview - ePlus has a market capitalization of $2.33 billion and reported revenue of $2.29 billion for the trailing twelve months (TTM) [5] - The net income for the same period is $121.88 million, with a 1-year price change of 16.36% as of January 13, 2026 [5] Transaction Summary - John E. Callies, a director at ePlus, sold 560 shares in an open-market transaction on December 8, 2025, for a total value of $50,417 [2][3] - After the transaction, Callies holds 21,428 shares, valued at approximately $1.93 million based on the reported price of $90.03 [3] - This sale is part of a series of transactions, with the previous sale being 1,050 shares in August 2024, indicating a smaller transaction size due to capacity constraints [8][9] Recent Developments - ePlus has had a strong first quarter of FY 2026, with combined earnings per share (EPS) of 4.62 already surpassing the annual EPS of previous years [12] - The company appointed a new Board of Directors on January 6, 2026, to enhance its financial and business expertise [12] Market Performance - The stock price of ePlus increased by 17.30% in 2025, recovering from an 8% decline in 2024, suggesting a positive market sentiment [11]

A few noteworthy financial and corporate updates have unfolded at ePlus inc. ( PLUS ) since I initiated coverage on PLUS back in August, with a Strong Buy rating. ePlus has been a quiet mid-cap nameMandela has been a cryptocurrency enthusiast and trader since 2017. He loves coding and writing about cryptocurrencies and crypto investment strategies. He has an in-depth understanding of distributed ledger technology, the Web3 technology stack, and crypto investing. He enjoys researching and analyzing cryptocur ...

Core Insights - ePlus inc. has experienced significant financial and corporate updates since coverage was initiated in August with a Strong Buy rating [1] Company Updates - ePlus is characterized as a quiet mid-cap name in the market [1]

Market Overview - The stock market experienced a rebound in the final week of November after a significant pullback, with buyers returning on the first trading day of December [1] - The outlook for the stock market remains optimistic through December and into 2026, driven by strong earnings growth in technology and artificial intelligence sectors [2] Investment Strategy - Investors are encouraged to continue purchasing stocks in December and into 2026, particularly those with a Zacks Rank 1 (Strong Buy) [2] - A Zacks screen can help identify top-performing stocks among over 200 companies with a Zacks Rank 1 [3] Screening Parameters - The screening process includes three key filters: 1. Zacks Rank equal to 1, which has historically provided an average annual return of approximately 24.4% since 1988 [5] 2. Positive percentage change in current quarter estimates over the last four weeks [6] 3. Top 5 stocks with the best average broker rating changes over the last four weeks [7] Company Spotlight: ePlus - ePlus (PLUS) is highlighted as a strong buy, having reported its first quarter of gross billings exceeding $1 billion, with revenue increasing by 23% to $609 million [10] - The company is projected to grow its revenue by 12% in FY26, reaching $2.32 billion, and its adjusted earnings are expected to grow by 3% in FY26 and 12% in FY27 [11] - ePlus has outperformed the tech sector over the past 20 years, with a stock price increase of 2,400% compared to the sector's 910% [12] - Despite its long-term success, ePlus trades at a 33% discount to the tech sector, with a forward P/E ratio of 18.9X [12]

Group 1 - The article does not provide any relevant content regarding company or industry insights [1]

Core Insights - ePlus reported Q3 CY2025 results that exceeded market revenue expectations, with sales increasing by 18.2% year-on-year to $608.8 million and a non-GAAP profit of $1.53 per share, which was 61.9% above analysts' consensus estimates [1][3][6] Financial Performance - Revenue reached $608.8 million, surpassing analyst estimates of $518.3 million, reflecting an 18.2% year-on-year growth and a 17.5% beat [6] - Adjusted EPS was $1.53 compared to analyst estimates of $0.95, marking a 61.9% beat [6] - Adjusted EBITDA was $58.7 million, significantly exceeding analyst estimates of $38.3 million, with a margin of 9,642% [6] - Operating margin remained stable at 8%, consistent with the same quarter last year [6] - Market capitalization stood at $2.22 billion [6] Growth Drivers - Strong demand in security, networking, and cloud solutions contributed to the outperformance, with security gross billings rising by 56% year-over-year due to customer investments in AI-driven infrastructure [3][7] - Broad-based growth was observed across customer segments and verticals, except for state and local government, which faced budget constraints [3][7] - Internal automation initiatives improved incident resolution and customer experience, leading to operating leverage that allowed adjusted EBITDA to grow at twice the rate of net sales [7] Strategic Focus - ePlus aims to build momentum through targeted investments in AI, cloud, and security, leveraging its strong cash position for organic growth and acquisitions [4] - The company is focused on enhancing its recurring revenue base through expanded service offerings and strategic hiring [4] - ePlus completed the acquisition of Realwave, a cloud-based AI software platform, to enhance its capabilities in delivering real-time, AI-driven insights [7] Capital Allocation - With over $400 million in cash, ePlus has significant flexibility for growth investments or returning capital to shareholders [8] - The company repurchased 60,000 shares and announced a quarterly dividend as part of its capital allocation strategy [8]

Core Viewpoint - Spirit Airlines has reached tentative agreements with unions representing its pilots and flight attendants, which include some contract concessions as the airline aims to control costs [1] Group 1: Union Agreements - The agreements involve concessions from both pilots and flight attendants, indicating a collaborative approach to address financial challenges [1] - These tentative deals are part of Spirit Airlines' broader strategy to manage operational costs effectively [1] Group 2: Financial Strategy - The airline is focused on rein in costs amidst a competitive market environment, highlighting the importance of cost management in the airline industry [1]

Financial Data and Key Metrics Changes - ePlus achieved over $1 billion in gross billings for the first time in its history, reflecting a 26.5% year-over-year increase [4][10] - Consolidated net sales for the quarter reached $608.8 million, up 23.4% year-over-year, with total gross billings for the first six months nearly $2 billion, marking a 20.3% increase [10][15] - Adjusted EBITDA increased 61.6% to $58.7 million, growing more than twice as fast as net sales, indicating strong operating leverage [14][15] Business Line Data and Key Metrics Changes - Product sales totaled $485.1 million, up 24.5% year-over-year, driven by demand in networking and security solutions [11] - Service revenue reached $123.8 million, representing a 19.4% increase, with professional services growing 23.3% and managed services increasing 13.5% [11][12] - Security products and services saw a 52% year-over-year increase in gross billings, now accounting for 24% of trailing 12 months' gross billings [6][10] Market Data and Key Metrics Changes - Strong performance was noted across various customer segments, particularly in mid-market and enterprise sectors, while state and local government sales were constrained due to budget issues [6][12] - Telecom, media, and entertainment, along with state and local government, were the largest verticals, accounting for 27% and 14% of net sales, respectively [12] Company Strategy and Development Direction - ePlus is focusing on high-growth areas such as AI, security, and cloud, aiming to enhance its product offerings and customer base [5][8] - The company completed the sale of its domestic financing business, allowing it to concentrate on technology services and expand its market presence [19][20] - A disciplined capital allocation strategy is in place, prioritizing strategic acquisitions, organic investments, dividends, and share repurchases [17] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the current market demand and raised guidance for fiscal year 2026, expecting mid-teens growth in net sales and gross profit [18][19] - The company is optimistic about leveraging its strong cash position to pursue growth opportunities while maintaining operating leverage [31][32] Other Important Information - ePlus closed the quarter with over $400 million in cash, providing flexibility for investments and shareholder returns [9][16] - The company announced a quarterly dividend of $0.25 per common share, payable on December 17, 2025 [19][17] Q&A Session Summary Question: What is driving the strength in security offerings? - Management noted that security gross billings were up 56%, driven by AI initiatives and investments in data classification and network security [22][23] Question: Can you discuss variability in strength across different end markets? - Management indicated strong performance across most verticals, with the exception of state and local government due to funding issues [25] Question: How does the pipeline look and what gives confidence in the raised outlook? - Management highlighted strong execution in a challenging economic environment and noted a healthy pipeline with large deals contributing to optimism [30] Question: How should leverage be balanced with the need to invest? - Management expects continued operating leverage while actively seeking opportunities for organic and inorganic growth [31]

Financial Performance - Total net sales for the three months ended September 30, 2025, reached $608.8 million, a 23.4% increase from $493.4 million in the same period of 2024[17] - Gross profit for the six months ended September 30, 2025, was $310.3 million, compared to $254.2 million for the same period in 2024, reflecting a 22.1% increase[17] - Net earnings from continuing operations for the six months ended September 30, 2025, were $65.3 million, up 48.5% from $44.0 million in the prior year[20] - Earnings per share for continuing operations increased to $2.48 for the six months ended September 30, 2025, compared to $1.65 for the same period in 2024[17] - Net earnings for the three months ended September 30, 2025, were $34.855 million, compared to $31.310 million for the same period in 2024, representing an increase of 8.3%[62] - Basic earnings per share for continuing operations increased to $1.45 for the three months ended September 30, 2025, from $0.75 in the same period of 2024, reflecting a growth of 93.3%[62] - For the six months ended September 30, 2025, net earnings were $72,552,000, compared to $54,678,000 for the same period in 2024, indicating a growth of approximately 32.7%[23] Balance Sheet Highlights - Total liabilities decreased to $720.7 million as of September 30, 2025, down from $907.2 million at the end of the previous fiscal year[14] - Cash and cash equivalents at the end of the period were $402.2 million, an increase from $187.5 million at the end of September 2024[20] - Total stockholders' equity increased to $1,046.1 million as of September 30, 2025, compared to $977.6 million at the end of the previous fiscal year[15] - As of September 30, 2025, ePlus reported total stockholders' equity of $1,046,082,000, an increase from $901,779,000 as of September 30, 2024, representing a year-over-year growth of approximately 15.9%[23] - ePlus's retained earnings reached $916,852,000 as of September 30, 2025, up from $742,978,000 as of September 30, 2024, marking a significant increase of approximately 23.4%[23] Operational Changes - The company completed the sale of its financing business on June 30, 2025, which positions ePlus as a pure-play technology solutions provider, impacting its operational focus moving forward[28] - Cisco Systems accounted for approximately 27% of ePlus's net sales for the six months ended September 30, 2025, down from 37% in the same period of 2024, reflecting a diversification in product sales[31] Cash Flow and Capital Management - The company reported a net cash used in operating activities of continuing operations of $(137.6) million for the six months ended September 30, 2025[20] - ePlus repurchased 60,000 shares of common stock for $4,404,000 during the six months ended September 30, 2025, as part of its capital management strategy[23] - The company repurchased 60,000 shares at a value of $4.4 million during the six months ended September 30, 2025, compared to 250,234 shares at a value of $19.8 million in the same period of 2024[64][65] Foreign Currency and Adjustments - The company experienced a foreign currency translation adjustment loss of $1.2 million for the three months ended September 30, 2025[18] - The company reported a foreign currency translation adjustment of $5,397,000 for the six months ended September 30, 2025, compared to $2,280,000 for the same period in 2024, indicating increased exposure to foreign currency fluctuations[23] - Foreign currency exposure related to transactions has not been significant, although fluctuations in exchange rates may impact financial results[162] Future Outlook and Strategic Initiatives - The company plans to continue focusing on market expansion and new product development to drive future growth[12] - Future revenue expected to be recognized from unsatisfied performance obligations totals $177.7 million, with $59.0 million expected in the remainder of the fiscal year ending March 31, 2026[38] Acquisitions and Intangible Assets - The company acquired Bailiwick Services, LLC for a total consideration of $124.9 million, including $126.2 million in cash at closing[80] - Identified intangible assets from the acquisition include customer relationships valued at $49.3 million and a trade name valued at $8.7 million[81] - Goodwill recognized from the Bailiwick acquisition amounts to $41.3 million, primarily due to expected synergies and an assembled workforce[82] Tax and Compensation - The provision for income tax expense for the three months ended September 30, 2025, was $15.8 million, compared to $7.5 million for the same period in 2024, showing a significant increase of 110.7%[73] - The effective tax rate for the three months ended September 30, 2025, was 29.3%, up from 27.5% in the same period of 2024[73] - Share-based compensation for the six months ended September 30, 2025, amounted to $6,558,000, compared to $5,463,000 for the same period in 2024, showing an increase of approximately 20%[23] - The total share-based compensation expense for the six months ended September 30, 2025, was $6.498 million, up from $5.321 million in the same period of 2024, indicating a year-over-year increase of 22.1%[71] Revenue Segmentation - The product segment generated $485.0 million in revenue for the three months ended September 30, 2025, up from $389.6 million in 2024, reflecting a 24.5% growth[90] - Revenue from the Telecom, Media & Entertainment sector increased to $176.8 million in Q3 2025, compared to $108.9 million in Q3 2024, marking a 62.4% increase[90]