XPEL Earnings Prediction
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 +4.77% change in stock price 10 days leading up to the earnings, and a -0.65% change 10 days following the report. On the earnings day itself, the stock moves by -0.24%. This data can give you a slight idea of what to expect for the next quarter's release.
XPEL Key Earning Data
2024/Q4
Year Over Year
Quarter Over Quarter
Total Revenue
107.53M
1.88%
-4.72%
Gross Margin
40.64%
4.80%
-4.29%
Operating Margin
11.48%
-14.84%
-29.53%
Net Margin
8.28%
-26.98%
-37.27%
EPS
0.32
-25.58%
-40.74%
No Data Available
XPEL Earnings Analysis
Xpel Inc Corporation (XPEL.O) Earnings Conference Call
Positive
Year-over-Year Revenue Growth: Revenue growth of 6% year-over-year, reaching $420.4 million for 2024, indicating resilience despite macroeconomic challenges.
Q4 Revenue Growth Excluding China: Fourth quarter revenue, excluding China, grew by 10.5%, showing positive momentum towards the end of the year.
US Region Growth Highlights: The US region experienced a 6.2% growth in Q4, with the Dealership Services business growing around 9%, highlighting strong performance in that segment.
Strong Demand in Dealership Services: Record high car counts in the Dealership Services business in Q4, with increasing average revenue per unit, indicating strong demand.
Distributor Acquisitions Impact: The company has successfully completed distributor acquisitions in Japan, Thailand, and India, which are expected to drive future revenue growth.
Gross Margin Improvement: Gross margin improved to 42.2% for the year, reflecting operational efficiency and cost management efforts.
New Product Revenue Surge: The launch of new products, such as the windshield protection film, generated $1.5 million in revenue in just one month, indicating strong market interest.
Dealer Conference Success: Positive feedback from the dealer conference with record attendance, suggesting strong engagement and optimism among partners and customers.
Customer Service Enhancement: The company is focused on enhancing customer service and operational efficiency, which is expected to drive future growth and customer satisfaction.
Negative
Revenue Growth Challenges: 2024 was a challenging year for the company, with revenue growth of just over 6% compared to 2023, falling short of expectations.
US Revenue Growth Analysis: The US region's revenue growth of 6.2% in Q4 was at the lower range of forecasts, primarily due to a slowdown in the Dealership Services business, which saw revenue growth of only 9%.
Dealership Inventory Concerns: Average units protected in some dealerships declined or remained flat compared to the previous year, indicating a potential issue with inventory levels at US dealerships.
OEM Revenue Decline: OEM revenue in Q4 declined slightly due to package changes to the Rivian program, negatively impacting the quarter's performance.
China Revenue Decline: China revenue fell significantly from $16.6 million in Q4 of the previous year to $9.2 million, marking a tough year-over-year comparison.
SG&A Expense Increase: SG&A expenses grew 17.4% to $31.4 million in Q4, raising concerns about cost management amid slower revenue growth.
FX Transaction Loss Impact: The company experienced a significant strengthening of the US dollar, resulting in an FX monetary transaction loss of approximately $1.2 million in Q4, impacting earnings per share.
EBITDA Decline and Profitability: EBITDA declined over 19% in Q4, reflecting a decrease in profitability, with a net income margin of only 8.3%.
Net Income Decline: Net income for the year declined 13.8% to $45.5 million, indicating a downward trend in overall profitability.
Inventory Management Challenges: The company faced challenges with inventory management, as year-end inventory levels did not remain static as planned, leading to elevated raw materials and work-in-progress levels.
