Markets

DXP Enterprises' (DXPE) Q2 Earnings & Revenues Top Estimates

DXP Enterprises, Inc.DXPE reported better-than-expected results for second-quarter 2018. The company is poised to boost its near-term revenues and profitability on the back of stronger demand across all end-markets.

Earnings/Revenues

Adjusted earnings in the reported quarter came in at 61 cents per share, remarkably up from 23 cents recorded in the year-ago quarter. Quarterly bottom-line result also handily outpaced the Zacks Consensus Estimate of 27 cents.

Revenues in the second quarter came in at $311.2 million, up 24.1% year over year. Additionally, the top-line figure comfortably surpassed the Zacks Consensus Estimate of $287 million. Notably, revenues improved 19.2% year over year on an organic basis.

Segmental Break-Up

Service Centers' revenues in the quarter under review improved 17.5% year over year to $193.6 million.

Innovative Pumping Solutions' second-quarter sales came in at $74.3 million, surging 67% year over year.

Supply Chain Services' top line recorded 4.6% year-over-year growth to $43.4 million.

DXP Enterprises, Inc. Price, Consensus and EPS Surprise

DXP Enterprises, Inc. Price, Consensus and EPS Surprise | DXP Enterprises, Inc. Quote

Costs/Margins

Cost of sales in the June-end quarter was $226.1 million, up 24.4% year over year. Gross profit margin was 27.3%, down 20 basis points (bps) year over year.

Selling, general and administrative expenses were $65.1 million, up from $58.7 million recorded in the year-ago quarter. Operating margin was 6.4%, up 230 bps year over year.

Balance Sheet/Cash Flow

Exiting the quarter, DXP Enterprises had cash worth $2.5 million, lower than $22 million recorded as of Dec 31, 2017. Long-term debt was $237.9 million, down from $238.6 million recorded at the end of 2017.

In first-half 2018, the company used $7 million cash for operating activities, as against $7.9 million cash generated in the comparable period last year. Adjusted free cash flow came in at $9.2 million, higher than $6.7 million witnessed at the end of first-half 2017.

Zacks Rank & Key Picks

DXP Enterprises currently carries a Zacks Rank #3 (Hold). Some better-ranked stocks in the Zacks Industrial Products sector are listed below:

Altra Industrial Motion Corp. AIMC sports a Zacks Rank of 1 (Strong Buy). The company pulled off an average positive earnings surprise of 4.01% over the last four quarters. You can see the complete list of today's Zacks #1 Rank stocks here .

Alamo Group, Inc. ALG carries a Zacks Rank #2 (Buy). The stock came up with an average positive earnings surprise of 6.06% over the preceding four quarters.

Apogee Enterprises, Inc. APOG is another Zacks #2 Ranked company. The stock generated an average positive earnings surprise of 0.88% during the same time frame.

More Stock News: This Is Bigger than the iPhone!

It could become the mother of all technological revolutions. Apple sold a mere 1 billion iPhones in 10 years but a new breakthrough is expected to generate more than 27 billion devices in just 3 years, creating a $1.7 trillion market.

Zacks has just released a Special Report that spotlights this fast-emerging phenomenon and 6 tickers for taking advantage of it. If you don't buy now, you may kick yourself in 2020.

Click here for the 6 trades >>

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

Apogee Enterprises, Inc. (APOG): Free Stock Analysis Report

Alamo Group, Inc. (ALG): Free Stock Analysis Report

DXP Enterprises, Inc. (DXPE): Free Stock Analysis Report

Altra Industrial Motion Corp. (AIMC): Free Stock Analysis Report

To read this article on Zacks.com click here.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

In This Story

AIMC APOG ALG DXPE

Other Topics

Earnings Stocks

Latest Markets Videos

    Zacks

    Zacks is the leading investment research firm focusing on stock research, analysis and recommendations. In 1978, our founder discovered the power of earnings estimate revisions to enable profitable investment decisions. Today, that discovery is still the heart of the Zacks Rank. A wealth of resources for individual investors is available at www.zacks.com.

    Learn More