ePlus inc. (NASDAQ:PLUS) Just Reported And Analysts Have Been Lifting Their Price Targets

Last week, you might have seen that ePlus inc. (NASDAQ:PLUS) released its annual result to the market. The early response was not positive, with shares down 2.5% to US$78.18 in the past week. It looks like the results were a bit of a negative overall. While revenues of US$2.2b were in line with analyst predictions, statutory earnings were less than expected, missing estimates by 3.0% to hit US$4.33 per share. 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. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.

View our latest analysis for ePlus

Taking into account the latest results, the most recent consensus for ePlus from three analysts is for revenues of US$2.31b in 2025. If met, it would imply a modest 3.9% increase on its revenue over the past 12 months. Statutory earnings per share are predicted to increase 9.4% to US$4.76. In the lead-up to this report, the analysts had been modelling revenues of US$2.32b and earnings per share (EPS) of US$4.85 in 2025. So it's pretty clear that, although the analysts have updated their estimates, there's been no major change in expectations for the business following the latest results.

With the analysts reconfirming their revenue and earnings forecasts, it's surprising to see that the price target rose 8.4% to US$90.00. It looks as though they previously had some doubts over whether the business would live up to their expectations.

One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. It's pretty clear that there is an expectation that ePlus' revenue growth will slow down substantially, with revenues to the end of 2025 expected to display 3.9% growth on an annualised basis. This is compared to a historical growth rate of 10% over the past five years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 6.4% per year. Factoring in the forecast slowdown in growth, it seems obvious that ePlus is also expected to grow slower than other industry participants.

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. On the plus side, there were no major changes to revenue estimates; although forecasts imply they will perform worse than the wider industry. We note an upgrade to the price target, suggesting that the analysts believes the intrinsic value of the business is likely to improve over time.

With that in mind, we wouldn't be too quick to come to a conclusion on ePlus. Long-term earnings power is much more important than next year's profits. 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..

You can also see our analysis of ePlus' Board and CEO remuneration and experience, and whether company insiders have been buying stock.

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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.