Core Insights - ePlus inc. reported strong financial results for the third quarter of fiscal year 2026, with net sales increasing by 24.6% year-over-year to $614.8 million, driven by higher product sales despite a slight decline in service revenue [5][6][12] - The company has raised its fiscal year 2026 guidance for net sales, gross profit, and Adjusted EBITDA, reflecting strong performance and momentum [23][25] Financial Performance - For the third quarter ended December 31, 2025, consolidated net sales reached $614.8 million, up from $493.2 million in the same quarter last year, while gross billings increased by 15.6% to $982.1 million [5][6] - Consolidated gross profit rose by 26.8% to $158.7 million, with a gross margin of 25.8%, compared to 25.4% in the prior year [6][9] - Net earnings from continuing operations surged by 129.3% to $33.4 million, with diluted earnings per share increasing by 130.9% to $1.27 [12][20] Segment Performance - Product segment sales increased by 32.2% to $501.8 million, driven by growth in networking, cloud, security, and collaboration products [7][15] - Professional services segment revenues decreased by 7.8% to $64.1 million, primarily due to project delays, while managed services segment revenue increased by 10.5% to $48.8 million [8][9] - The overall gross profit for the managed services segment increased by 7.5%, although gross margin declined to 29.0% [9] Balance Sheet Highlights - As of December 31, 2025, cash and cash equivalents were $326.3 million, down from $389.4 million, while inventory increased by 100.1% to $241.0 million [22] - Accounts receivable increased by 35.0% to $698.0 million, indicating growth in sales and projects in process [22] Fiscal Year Guidance - The company now expects net sales to increase by 20% to 22% year-over-year, up from previous guidance of mid-teens growth [23] - Gross profit is projected to grow at a rate of 19% to 21%, and Adjusted EBITDA is expected to increase by 41% to 43% over the previous fiscal year [23] Dividend Announcement - ePlus announced a quarterly cash dividend of $0.25 per common share, payable on March 18, 2026, to shareholders of record as of February 24, 2026 [28]

Core Insights - ePlus inc. has initiated its first quarterly dividend, set at $0.25 per common share, marking a significant shift in its capital return strategy to shareholders [2] - The decision to pay dividends reflects ePlus's commitment to enhancing shareholder value through disciplined capital allocation and confidence in its growth outlook [3] - ePlus plans to maintain its share repurchase program while also considering reinvestment in organic growth and selective mergers and acquisitions to strengthen the company long-term [4] Company Overview - ePlus has expanded its operations since going public in November 1996, utilizing acquisitions to enhance its geographic reach and technology capabilities [5] - The company operates through three subsidiaries organized into two main segments: the Financing Business Unit, which focuses on leasing and business process outsourcing, and the Technology Sales Business Unit, which encompasses IT sales and software services [6] - ePlus provides a range of technology solutions and services aimed at supporting digital transformation, including offerings in artificial intelligence, security, cloud and data center, networking, and collaboration [7]

Group 1: G-III Apparel Group Ltd - G-III Apparel Group Ltd has shown strong performance in the apparel sector, with significant revenue growth reported in the latest quarter [1] - The company is expanding its brand portfolio, which is expected to enhance market presence and drive future sales [1] Group 2: ePlus Inc - ePlus Inc has experienced an increase in demand for its technology solutions, leading to improved financial results [1] - The company is focusing on strategic partnerships to enhance its service offerings and market reach [1] Group 3: Carnival Corporation - Carnival Corporation is recovering from previous operational challenges, with a notable increase in passenger bookings and revenue [1] - The cruise line is implementing new health and safety protocols to attract customers and ensure a safe travel experience [1] Group 4: Tutor Perini Corporation - Tutor Perini Corporation has secured several new contracts, contributing to a positive outlook for future revenue growth [1] - The company is investing in technology to improve project efficiency and reduce costs [1]

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]

Group 1 - ePlus inc. has experienced noteworthy financial and corporate updates since coverage was initiated in August with a Strong Buy rating [1] - ePlus is characterized as a quiet mid-cap name in the market [1] Group 2 - The article does not provide specific financial metrics or performance data related to ePlus inc. [1]

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]