DXP Enterprises, Inc.
) reached a new 52-week high of $98.68 during its trading session
on Nov 29. This denotes an increase over the previous high of
$98.00 reached on Nov 27.
DXP Enterprises closed the trading day on Nov 29 at $97.98,
reflecting a solid year-to-date return of 94.1%. The trading
volume for the session was 0.02 million shares. Further upside
potential exists for this Zacks Rank #2 (Buy) industrial
equipment wholesaler as can be deduced from its positive earnings
estimate revisions in the last 60 days and expected earnings
growth of 19.2% for 2014.
Results of DXP Enterprises for the third quarter 2013 were
impressive and following the release on Oct 30, 2013, the
company's shares rose by 18.3%. Earnings per share in the quarter
were $1.07, up 24.4% year over year and 7.0% above the Zacks
Consensus Estimate of $1.00
Sales increased 13.7% as Service Centers and IPS segments of DXP
Enterprises recorded healthy performance, offset partially by
weak results from the SCS segment. On a same store sales basis,
revenue in the quarter grew 3.8%.
Increase in sales negated the impact of 12.7% rise in cost of
sales. Gross margin in the quarter was up 70 basis points at
29.5%. Operating income grew 9.7% year over year and the margin
stood at 8.2%.
Going forward, management of DXP Enterprises intends to deliver
solid results on the back of organic as well as contributions
from acquisitions. Possibility is high for a good quarter
performance ahead, after considering this, and a positive 8.9%
average earnings surprise of the trailing four quarters.
Estimate Revisions Show Potency
Over the last 60 days, the Zacks Consensus Estimate for DXP
Enterprises has increased by 1.3% to $3.90 for 2013 and by 1.1%
to $4.65 for 2014, respectively.
DXP Enterprises currently has a market capitalization of $1.4
billion and carries a Zacks Rank #2 (Buy). Some other stocks
worth considering in the machinery-general industries include
). While Xylem carries a Zacks Rank #1 (Strong Buy), Graham and
Middleby both hold a Zacks Rank #2 (Buy).
DXP ENTERPRISES (DXPE): Free Stock Analysis
GRAHAM CORP (GHM): Free Stock Analysis Report
MIDDLEBY CORP (MIDD): Free Stock Analysis
XYLEM INC (XYL): Free Stock Analysis Report
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