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DXP Enterprises Starts Shares Offering, Initial Q3 Data Weak

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Machinery company DXP Enterprises, Inc. (DXPE - Free Report) recently announced that it has initiated a public offering of common shares. It also released its preliminary results for third-quarter 2016.

As revealed on Oct 20, DXP Enterprises’ primary public offering was made for 2.7 million shares. The company intends to use the net proceeds to repay outstanding borrowings under its credit facility.

DXP Enterprises also released selected financial information for the third quarter. The company estimates sales to come in within $228−$231 million range, representing year-over-year decline of 23.8−24.8%. Compared with the previous quarter, the sales estimates are expected to decline 9.8−11%. The sales decline was attributable to low bookings and shipments in all business segments in the month of July. Gross profit is expected to be within $62−$64 million range, representing decline both on a year-over-year and sequential basis.     

DXP Enterprises predicts bottom-line to range from net loss of $0.5 million to net earnings of $0.5 million.

Exiting the quarter, DXP Enterprises anticipates reporting cash and cash equivalents of $3.4 million and total debt of $319.3 million.

DXP Enterprises, Inc. specializes in supplying maintenance, repair and operating products, equipment and services to a vast clientele in the industrial sector. Its value-added services include system designing, fabrication, installation, repair and maintenance for its customers.

DXP Enterprises is slated to release its third quarter results on Nov 7. The Zacks Consensus Estimate for the quarter is pegged at 16 cents per share.

DXP ENTERPRISES Price and Consensus

 

DXP ENTERPRISES Price and Consensus | DXP ENTERPRISES Quote

Zacks Rank & Other stocks to Consider

DXP Enterprises, with a market capitalization of $351.1 million, currently carries a Zacks Rank #2 (Buy).

Other stocks worth mentioning in the machinery industry include Nordson Corporation (NDSN - Free Report) , Barnes Group (B - Free Report) and Chart Industries Inc. (GTLS - Free Report) . While Nordson Corporation sports a Zacks Rank #1(Strong Buy), Barnes Group and Chart Industries carry a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.

Nordson Corporation’s financial performance has been impressive, with an average positive earnings surprise of 9.13% for the last four quarters. Also, earnings estimates for fiscal 2016 and fiscal 2017 have been revised upward over the last 60 days.

Barnes Group reported better-than-expected results in the last quarter, with a positive earnings surprise of 6.78%. Also, bottom-line expectations for 2017 have improved over the past 60 days.

Chart Industries’s financial performance has been impressive, with an average positive earnings surprise of 428.37% for the last four quarters. Also, earnings estimates for 2016 and 2017 have been revised upward over the last 60 days.

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