The chart below shows how XPEL performed 10 days before and after its earnings report, based on data from the past quarters. Typically, XPEL sees a +1.23% change in stock price 10 days leading up to the earnings, and a -2.06% change 10 days following the report. On the earnings day itself, the stock moves by +1.53%. This data can give you a slight idea of what to expect for the next quarter's release.
Positive
Record Revenue Growth: Revenue grew 9.9% to $112.9 million, which is a record high for us.
Revenue Growth Excluding China: Excluding China, total revenue grew 12.3%.
U.S. Revenue Growth: Our U.S. business turned in another good quarter, revenue growing 9.4% to $64.6 million.
Canada Growth Rate: Canada grew 25.7%.
Strong Cash Flow Performance: We had a solid cash flow quarter, generating $19.6 million.
Negative
Record Revenue Growth: Revenue growth of 9.9% to $112.9 million, which is a record high for us, but excluding China, total revenue grew only 12.3%.
Quarterly Gross Margin Decline: Gross margin for the quarter finished at 42.5%, down 100 basis points from Q2, impacted by a mix in China.
SG&A Expense Increase: SG&A expenses grew 23.6% over Q3 2023, indicating increased operational costs.
Net Income Increase Analysis: Our Q3 net income increased only 9.1% to $14.9 million, reflecting a net income margin of 13.2%, which is relatively low.
Q4 Revenue Decline Expected: We expect Q4 revenue to be lower than Q2 and Q3 highs, indicating a potential decline in performance.
XPEL, Inc. (XPEL) Q3 2024 Earnings Call Transcript
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