Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.
What: Shares of ePlus (NASDAQ:PLUS) ended Friday up 15% after slipping from gains of up to 19% in early trading. The market is evidently quite pleased with the information-technology service provider's earnings report for its fiscal third quarter, and shares reached another all-time high today -- an event that has become commonplace for ePlus shareholders since mid-2013.
So what: ePlus reported quarterly revenue of $306.2 million, which resulted in adjusted earnings of $1.64. The company's results compared favorably to Wall Street's expectation for $291.2 million in revenue and EPS of $1.41. ePlus did not provide any guidance on the fiscal fourth quarter that is now under way, but this clearly didn't matter today.
Now what: ePlus has been making new highs for a year and a half, and is riding a six-year growth streak that has boosted its share price more than sevenfold. However, the company's revenue has only grown by about 50% during that time. Its adjusted EPS has improved by about 150%, which has resulted in a P/E that is now at levels not seen since the financial crisis. On the other hand, that P/E is still just 15.5, even after today's pop.
ePlus is clearly doing something right. Its adjusted earnings per share continue to grow strongly, rising 24% from the year-ago quarter. On a year-to-date basis, adjusted EPS is 31% higher than it was at this time a year ago. Today's results certainly merit a closer look, as ePlus is still quite small by stock market standards. How much more growth could still lie ahead?
Alex Planes has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.