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 -0.01% change in stock price 10 days leading up to the earnings, and a +17.04% change 10 days following the report. On the earnings day itself, the stock moves by +3.35%. This data can give you a slight idea of what to expect for the next quarter's release.
DXPE Key Earning Data
2024/Q4
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DXPE Earnings Analysis
DXP Enterprises Inc Corporation (DXPE.O) Earnings Conference Call
Positive
Key Financial Metrics Surge: Record year for key financial metrics including sales per business day, gross profit margins, and adjusted EBITDA margin.
Record Sales Achievement: Sales increased by 7.4% to $1.8 billion in fiscal 2024, achieving a new high sales watermark for DXP.
Gross Profit Margin Improvement: Gross profit margins improved by 77 basis points to 30.9%, reflecting operational efficiencies and successful acquisitions.
Adjusted EBITDA Performance: Adjusted EBITDA for fiscal 2024 was $191 million, with adjusted EBITDA margins exceeding 10% for the second consecutive year.
Pumping Solutions Growth: Innovative Pumping Solutions segment grew by 47.7% year-over-year, significantly contributing to overall sales growth.
Strategic Acquisition Success: Successful execution of 7 acquisitions in fiscal 2024, enhancing market diversification and positioning for future growth.
Strong Free Cash Flow: Generated $77 million in free cash flow, demonstrating strong cash generation capabilities while investing in growth.
Debt Refinancing Strategy: Refinanced debt, reducing interest costs and maintaining a flexible capital structure to support future acquisitions and investments.
High Return on Invested Capital: Achieved a return on invested capital (ROIC) of 39%, reflecting improved profitability and efficient working capital management.
Sales Growth per Day: Sales per business day increased to $7.595 million in Q4, up 13.8% compared to Q4 of 2023.
Negative
Supply Chain Services Decline: Sales growth in Supply Chain Services declined by 1.5% year-over-year, indicating challenges in that segment.
Supply Chain Services Decline: Facility closures by customers negatively impacted Supply Chain Services performance, leading to a slight decrease in sales.
Service Centers Growth Stagnation: Despite overall sales growth, the Service Centers segment only grew by 1.9%, suggesting potential stagnation in that area.
SG&A Expense Concerns: SG&A expenses increased by $44.3 million from fiscal 2023 to 2024, raising concerns about cost management as SG&A as a percentage of sales also increased to 22.8%.
Cash Decrease and Liquidity Concerns: The company experienced a decrease in cash on the balance sheet by $24.8 million compared to the end of Q4 2023, which may raise liquidity concerns.
Modest Gross Profit Improvement: While gross profit margins improved, the increase was modest at 77 basis points, which may not be sufficient to offset rising costs in the future.
DXPE FAQs
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DXPE Earning Call Sentiment
DXP Enterprises, Inc. (NASDAQ:DXPE) Q4 2024 Earnings Call Transcript
DXPE.O
6.45%Positive
The earnings call reflects strong financial performance with increased sales, EBITDA, and margins. The share repurchase program and acquisition strategy are positive indicators. Despite some uncertainties in margins and external risks, the overall outlook is optimistic with strong demand in key sectors and effective cost management. This suggests a positive stock price movement in the short term.
