DXPE Earnings Prediction
The chart below shows how DXPE performed 10 days before and after its earnings report, based on data from the past quarters. Typically, DXPE sees a -7.00% change in stock price 10 days leading up to the earnings, and a +19.70% change 10 days following the report. On the earnings day itself, the stock moves by +6.39%. This data can give you a slight idea of what to expect for the next quarter's release.
DXPE Key Earning Data
2024/Q4
Year Over Year
Quarter Over Quarter
Total Revenue
472.94M
12.81%
6.14%
Gross Margin
30.89%
3.14%
-0.13%
Operating Margin
8.37%
-2.11%
-0.12%
Net Margin
4.46%
15.54%
18.93%
EPS
1.27
36.56%
27.00%
No Data Available
DXPE Earnings Analysis
DXP Enterprises Inc Corporation (DXPE.O) Earnings Conference Call
Positive
Record Revenue Achievement: 1. Record Revenue Growth: DXP reported total revenue of $472.9 million for Q3 2024, marking a 12.8% increase year-over-year and a 6% sequential increase, achieving record sales levels.
EBITDA Growth Analysis: 2. Strong EBITDA Performance: Adjusted EBITDA for Q3 2024 was $52.4 million, reflecting a year-over-year increase of 19.1% from $44 million in Q3 2023, with adjusted EBITDA margins at 11.1%.
Pumping Solutions Sales Surge: 3. Innovative Pumping Solutions Surge: Sales in the Innovative Pumping Solutions segment grew 52.3% year-over-year to $89.8 million, significantly contributing to overall revenue growth.
Gross Profit Margin Improvement: 4. Improved Gross Profit Margins: DXP's overall gross profit margins improved to 30.9%, a 94 basis point increase compared to Q3 2023, driven by strong performance in Service Centers and acquisitions.
Earnings Per Share Increase: 5. Increased Earnings Per Share: DXP's earnings per diluted share for Q3 2024 rose to $1.27, up from $0.93 in the prior year, with adjusted earnings per diluted share at $1.43.
Negative
Rising SG&A Expenses: 1. Increased SG&A Expenses: SG&A expenses rose by $16.8 million year-over-year, increasing as a percentage of sales from 21.4% in Q3 2023 to 22.5% in Q3 2024.
Operating Income Margin Decline: 2. Decline in Operating Income Margin: DXP's overall operating income margin decreased to 8.4% in Q3 2024, down from 8.6% in Q3 2023, reflecting an 18 basis point decline.
Free Cash Flow Decline: 3. Free Cash Flow Decrease: Free cash flow for Q3 2024 was $24.4 million, a significant drop from $38.3 million in Q3 2023, primarily due to increased investments in inventory and project work.
Cash Decrease Analysis: 4. Cash Position Decline: Cash on hand decreased by $104.7 million from the end of Q1 2024 to $35 million as of September 30, 2024, largely due to acquisition activities and share repurchases.
Working Capital Improvement: 5. Working Capital Increase: Working capital increased by $26.5 million from December 2023 to $298.6 million, representing 17.2% of the last 12-month sales, indicating a rise in capital tied up in operations.
DXPE FAQs
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DXPE Earning Call Sentiment
DXP Enterprises, Inc. (DXPE) Q3 2024 Earnings Call Transcript
DXPE.O
0.51%Positive
The earnings call summary indicates strong financial performance with a 12.8% increase in total sales and a 19.1% rise in adjusted EBITDA. The share repurchase program and improved gross profit margin are also positive indicators. Despite some concerns about SG&A expenses and free cash flow, the company's strategic acquisitions and strong end-market performance, particularly in energy and water, support a positive outlook. The Q&A session did not reveal significant negative sentiment from analysts, reinforcing a positive sentiment for the stock price over the next two weeks.
