DXP Enterprises (NASDAQ:DXPE) Posts Earnings Results, Misses Estimates By $0.12 EPS

DXP Enterprises (NASDAQ:DXPE) posted its earnings results on Thursday. The industrial products company reported $1.26 earnings per share for the quarter, missing analysts’ consensus estimates of $1.38 by ($0.12), Zacks reports. The business had revenue of $521.66 million for the quarter, compared to analyst estimates of $531.00 million. DXP Enterprises had a return on equity of 18.41% and a net margin of 4.27%.

Here are the key takeaways from DXP Enterprises’ conference call:

• Q1 results showed strength with sales of $521.7M (+9.5% YoY), gross margin of 32.3% (+79 bps), adjusted EBITDA of $57.8M (11.1%), adjusted EPS of $1.26, and $26.3M of free cash flow.
• Innovative Pumping Solutions led growth with sales up 37.7% to $111.7M and sturdy backlogs in energy and water that management says provide multi-quarter revenue visibility.
• Sales accelerated through the quarter after a weak January (daily sales Jan $7.2M → Feb $8.4M → Mar $9.2M; April ~ $9.0M and +15% YoY), signaling improving demand into Q2.
• SG&A rose by $16.1M to $126.1M (24.2% of sales) due to discrete items—healthcare, legal/audit and other one-time costs—which could pressure near-term margins until they normalize.
• Balance sheet activity included $844.7M of total debt, a $90.4M decline in cash to $213.4M to fund three acquisitions, higher working capital and $1.8M more interest expense, increasing leverage and near-term financing costs despite ample liquidity.

DXP Enterprises Price Performance

Shares of NASDAQ:DXPE traded up $6.16 during trading on Friday, reaching $156.18. 202,115 shares of the company traded hands, compared to its average volume of 224,695. The company’s 50 day moving average is $147.76 and its two-hundred day moving average is $127.54. The firm has a market capitalization of $2.42 billion, a PE ratio of 29.19 and a beta of 1.07. The company has a quick ratio of 2.94, a current ratio of 3.34 and a debt-to-equity ratio of 1.64. DXP Enterprises has a 52 week low of $75.58 and a 52 week high of $183.91.

Insider Buying and Selling at DXP Enterprises

In other news, Director Joseph R. Mannes sold 1,500 shares of the company’s stock in a transaction on Monday, March 9th. The stock was sold at an average price of $137.95, for a total transaction of $206,925.00. Following the completion of the sale, the director directly owned 13,964 shares in the company, valued at approximately $1,926,333.80. This represents a 9.70% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this hyperlink. Insiders own 22.70% of the company’s stock.

Institutional Trading of DXP Enterprises

A number of institutional investors have recently modified their holdings of the stock. CANADA LIFE ASSURANCE Co lifted its position in shares of DXP Enterprises by 0.9% during the 2nd quarter. CANADA LIFE ASSURANCE Co now owns 10,857 shares of the industrial products company’s stock valued at $950,000 after acquiring an additional 100 shares during the period. Private Advisor Group LLC lifted its position in shares of DXP Enterprises by 1.2% during the 3rd quarter. Private Advisor Group LLC now owns 10,247 shares of the industrial products company’s stock valued at $1,220,000 after acquiring an additional 122 shares during the period. Franklin Resources Inc. lifted its position in shares of DXP Enterprises by 2.0% during the 3rd quarter. Franklin Resources Inc. now owns 9,228 shares of the industrial products company’s stock valued at $1,099,000 after acquiring an additional 185 shares during the period. Swiss National Bank lifted its position in shares of DXP Enterprises by 1.2% during the 3rd quarter. Swiss National Bank now owns 25,800 shares of the industrial products company’s stock valued at $3,072,000 after acquiring an additional 300 shares during the period. Finally, The Manufacturers Life Insurance Company lifted its position in shares of DXP Enterprises by 4.9% during the 2nd quarter. The Manufacturers Life Insurance Company now owns 6,616 shares of the industrial products company’s stock valued at $580,000 after acquiring an additional 311 shares during the period. 74.82% of the stock is currently owned by institutional investors.

Wall Street Analysts Forecast Growth

A number of research analysts recently weighed in on the company. Zacks Research raised DXP Enterprises from a “hold” rating to a “strong-buy” rating in a report on Thursday, March 12th. Loop Capital set a $154.00 price objective on DXP Enterprises in a report on Monday, March 2nd. Finally, Wall Street Zen raised DXP Enterprises from a “hold” rating to a “buy” rating in a report on Saturday, March 28th. One analyst has rated the stock with a Strong Buy rating and two have issued a Buy rating to the company. According to MarketBeat.com, the stock currently has an average rating of “Buy” and an average target price of $154.00.

About DXP Enterprises

DXP Enterprises, Inc is a Houston, Texas–based industrial products and services distributor serving customers across North America. The company provides a broad portfolio of maintenance, repair and operations (MRO) supplies, including fluid power components, safety products, mechanical power transmission parts, and instrumentation. DXP’s product offering spans well-recognized private brands as well as equipment and parts from leading global manufacturers, enabling clients in energy, heavy industrial and manufacturing sectors to source critical components from a single supplier.

Through its network of service centers and specialized repair facilities, DXP delivers inventory management programs, turnkey fluid power rebuilds and custom assembly solutions.