ePlus Inc. Announces New Share Repurchase Program Income Investors 2018-02-15 06:06:37 ePlus Inc NASDAQ: PLUS ePlus Inc. (NASDAQ: PLUS) announces a new share repurchase program. Dividend Stocks,News https://www.incomeinvestors.com/wp-content/uploads/2016/08/iStock_91554247_SMALL-150x150.jpg

ePlus Inc. Announces New Share Repurchase Program

Authorizes Buyback of 500,000 Shares Over the Next 12 Months

In the eyes of investors, IT companies might not be as hot as they used to be, but one of them is still returning value to shareholders through aggressive buybacks.

On Friday, ePlus Inc. (NASDAQ:PLUS) announced that its board of directors has approved a new share repurchase program. The company is authorized to repurchase up to 500,000 of its own shares over a 12-month period starting on August 19, 2016. (Source: “ePlus Announces Stock Repurchase Program,” ePlus Inc., August 19, 2016.)

ePlus Inc. is a holding company that provides information technology products and services, flexible leasing and financing solutions, and enterprise supply management through its subsidiaries in the U.S. The company, founded in 1990 and is headquartered in Herndon, Virginia, operates through two segments, Technology and Financing.

The company has been buying back its shares aggressively. Its former repurchase program, which also authorized the buyback of 500,000 shares, expired on August 16, 2016; by July 29, ePlus had approximately 7.1 million shares of common stock outstanding. The company will be making the purchases from time to time in the open market or in privately negotiated transactions.

The buyback announcement is the latest sign of strength for the technology company following ePlus reporting earnings last month. In the first quarter of its fiscal yeah 2017, which ended June 30, net sales increased 10.6% year-over-year to $298.5 million. The highlight was the Technology segment, which enjoyed a 11.5% growth in net sales to $291.5 million. (Source: “ePlus Reports First Quarter Financial Results,” ePlus Inc., August 2, 2016.)

Financing segment experienced a 15.7% decline in net sales. However, with just $7.0 million in net sales, the segment is much smaller compared to ePlus’ Technology segment.

Top-line growth translated to the company’s bottom line. For the quarter, net earnings climbed 21.1% to $10.7 million. Adjusted earnings per share came in at $1.25, a significant improvement from the $1.25 per share earned in the year-ago period.

“While overall IT industry growth remains modest, we believe we are well positioned to grow ahead of the overall market in fiscal 2017,” said Mark P. Marron, president and CEO of ePlus. “Our financial position, operational expertise and nationwide client base give us confidence that we can leverage this growth to create further value in the quarters ahead.” (Source: Ibid.)

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