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The end of an earnings season can be a great time to discover new stocks and assess how companies are handling the current business environment. Let’s take a look at how ePlus (NASDAQ:PLUS) and the rest of the it distribution & solutions stocks fared in Q4.
IT Distribution & Solutions will be buoyed by the increasing complexity of IT ecosystems, rising cloud adoption, and demand for cybersecurity solutions. Enterprises are less likely than ever to embark on these complicated journeys solo, and companies in the sector boast expertise and scale in these areas. However, cloud migration also means less need for hardware, which could dent demand for large portions of the product portfolio and hurt margins. Additionally, planning for potentially supply chain disruptions is ongoing, as the COVID-19 pandemic showed how damaging a pause in global trade could be in areas like semiconductor procurement.
The 8 it distribution & solutions stocks we track reported a softer Q4. As a group, revenues missed analysts’ consensus estimates by 2.7% while next quarter’s revenue guidance was in line.
Amidst this news, share prices of the companies have had a rough stretch. On average, they are down 19.3% since the latest earnings results.
Weakest Q4: ePlus (NASDAQ:PLUS)
Starting as a financing company in 1990 before evolving into a full-service technology provider, ePlus (NASDAQ:PLUS) provides comprehensive IT solutions, professional services, and financing options to help organizations optimize their technology infrastructure and supply chain processes.
ePlus reported revenues of $511 million, flat year on year. This print fell short of analysts’ expectations by 7.7%. Overall, it was a disappointing quarter for the company with a significant miss of analysts’ EPS estimates.
The stock is down 29.5% since reporting and currently trades at $57.15.
Read our full report on ePlus here, it’s free.
Best Q4: CDW (NASDAQ:CDW)
Serving as a crucial bridge between technology manufacturers and end users since 1984, CDW (NASDAQ:CDW) is a multi-brand provider of information technology solutions that helps businesses and public sector organizations select, implement, and manage hardware, software, and IT services.
CDW reported revenues of $5.19 billion, up 3.3% year on year, outperforming analysts’ expectations by 2.9%. The business had a very strong quarter with an impressive beat of analysts’ EPS estimates.
CDW achieved the biggest analyst estimates beat among its peers. Although it had a fine quarter compared its peers, the market seems unhappy with the results as the stock is down 21.8% since reporting. It currently trades at $156.01.