Technology solutions provider $ePlus (PLUS.US)$ reported its latest quarterly earnings, falling slightly short of Wall Street expectations. Shares were trading more than 8% lower after-hours Tuesday.
The company posted Q2 earnings of $1.36 per share, just missing the analyst consensus estimate of $1.39 by about 2.16%, reported Benzinga. This result also marks a year-over-year decline of 2.86% compared to earnings of $1.40 per share in the same period last year.
Revenue for the quarter came in at $515.17 million, below analysts' estimates of $576.50 million—a difference of 10.64%. This quarterly revenue figure also reflects a 12.33% drop from the $587.61 million reported in the same quarter the previous year.
"Our results in the second quarter reflect the ongoing evolution of the industry towards ratable and subscription revenue models and slower product sales, partially offset by the continued strength of our services-led approach," said Mark Marron, president and CEO of ePlus.
"During the quarter, we acquired Bailiwick Services, LLC, which will help us drive core to edge computing solutions for our enterprise customers. In addition, we continue to see a shift towards services and more software and subscription-based sales as a percentage of the whole, and these are often recognized ratably or on a net basis creating a net sales headwind. On the product front, artificial intelligence (AI) continues to progress, and our customers are exploring advantages to integrate AI into various aspects of their businesses."
Mr. Marron continued, "We ended the quarter with a solid balance sheet. Our healthy cash position enabled us to fund the acquisition of Bailiwick in the quarter, with ample additional liquidity to support our capital allocation priorities as we work to deliver increased shareholder value."
