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DXP Enterprises (DXPE) Beats on Q4 Earnings and Revenues
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Machinery company DXP Enterprises, Inc. (DXPE - Free Report) reported impressive bottom-line results for fourth-quarter 2016. The company’s earnings came in at 42 cents per share, considerably above the Zacks Consensus Estimate of 3 cents. Also, the bottom line improved from the loss of 20 cents per share in the year-ago quarter.
For 2016, the company’s earnings were 49 cents per share, as against the year-ago loss of $2.68.
Revenues
In the quarter, DXP Enterprises generated revenues of $222.3 million, down 20.2% year over year. However, the top line surpassed the Zacks Consensus Estimate of $212 million.
DXP Enterprises reports its net sales under three heads/segments. The segmental results are briefly discussed below:
Revenues from Service Centers segment totaled $139.7 million, down 25.5% year over year.
Revenues from Innovative Pumping Solutions segment fell 12.8% year over year to $45.5 million.
Revenues from Supply Chain Services segment were $37.1 million, down 5.1% year over year.
For 2016, DXP Enterprises’ revenues totaled $962.1 million, decreasing 22.9% from the year-ago tally of $1,247 million.
Margins
In the quarter, DXP Enterprises’ cost of sales decreased 19.8% year over year, representing 72.8% of net sales compared with 72.4% in the year-ago quarter. Gross margin decreased 40 basis points year over year to 27.2%. Selling, general and administrative expenses, as a percentage of revenues were 23.8% compared with 25.7% recorded in the year-ago quarter.
Adjusted earnings before interest, tax, depreciation and amortization (EBITDA) were $20.4 million, up 49.8% year over year. EBITDA margin was 9.2% in the quarter.
Balance Sheet and Cash Flow
Exiting the fourth quarter, DXP Enterprises had cash balance of $1.59 million, down from $3.4 million recorded at the previous quarter end. Long-term debt balance was $174.3 million versus $203 million at the end of the previous quarter.
In 2016, the company generated net cash of $48 million from its operating activities, down from $98 million in the year-ago period. Capital spending totaled $4.9 million, decreasing 65.2% year over year.
Outlook
For 2017, DXP Enterprises anticipates better growth opportunities on the back its improving operational efficiency, new business wins a well as investments in products and services. Maintaining a cautiously optimistic tone, the company predicts better business from some of its energy and industrial customers.
With a market capitalization of approximately $656.7 million, DXP Enterprises currently carries a Zacks Rank #3 (Hold). Better-ranked machinery stocks include Parker-Hannifin Corporation (PH - Free Report) , Altra Industrial Motion Corp. and Barnes Group, Inc. (B - Free Report) . While Parker-Hannifin sports a Zacks Rank #1 (Strong Buy), both Altra Industrial Motion and Barnes Group carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Parker-Hannifin reported better-than-expected results in the last four quarters, with an average positive earnings surprise of 12.44%. Also, bottom-line expectations for fiscal 2017 and fiscal 2018 improved over the past 60 days.
Altra Industrial Motion’ financial performance was impressive in the last four quarters, with an average positive earnings surprise of 12.49%. Also, earnings estimates for 2017 and 2018 were revised upward over the last 60 days.
Barnes Group reported better-than-expected results in the last four quarters, with an average positive earnings surprise of 4.36%. Also, its earnings estimates for 2017 and 2018 improved in the last 60 days.
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DXP Enterprises (DXPE) Beats on Q4 Earnings and Revenues
Machinery company DXP Enterprises, Inc. (DXPE - Free Report) reported impressive bottom-line results for fourth-quarter 2016. The company’s earnings came in at 42 cents per share, considerably above the Zacks Consensus Estimate of 3 cents. Also, the bottom line improved from the loss of 20 cents per share in the year-ago quarter.
For 2016, the company’s earnings were 49 cents per share, as against the year-ago loss of $2.68.
Revenues
In the quarter, DXP Enterprises generated revenues of $222.3 million, down 20.2% year over year. However, the top line surpassed the Zacks Consensus Estimate of $212 million.
DXP Enterprises reports its net sales under three heads/segments. The segmental results are briefly discussed below:
Revenues from Service Centers segment totaled $139.7 million, down 25.5% year over year.
Revenues from Innovative Pumping Solutions segment fell 12.8% year over year to $45.5 million.
Revenues from Supply Chain Services segment were $37.1 million, down 5.1% year over year.
For 2016, DXP Enterprises’ revenues totaled $962.1 million, decreasing 22.9% from the year-ago tally of $1,247 million.
Margins
In the quarter, DXP Enterprises’ cost of sales decreased 19.8% year over year, representing 72.8% of net sales compared with 72.4% in the year-ago quarter. Gross margin decreased 40 basis points year over year to 27.2%. Selling, general and administrative expenses, as a percentage of revenues were 23.8% compared with 25.7% recorded in the year-ago quarter.
Adjusted earnings before interest, tax, depreciation and amortization (EBITDA) were $20.4 million, up 49.8% year over year. EBITDA margin was 9.2% in the quarter.
Balance Sheet and Cash Flow
Exiting the fourth quarter, DXP Enterprises had cash balance of $1.59 million, down from $3.4 million recorded at the previous quarter end. Long-term debt balance was $174.3 million versus $203 million at the end of the previous quarter.
In 2016, the company generated net cash of $48 million from its operating activities, down from $98 million in the year-ago period. Capital spending totaled $4.9 million, decreasing 65.2% year over year.
Outlook
For 2017, DXP Enterprises anticipates better growth opportunities on the back its improving operational efficiency, new business wins a well as investments in products and services. Maintaining a cautiously optimistic tone, the company predicts better business from some of its energy and industrial customers.
DXP Enterprises, Inc. Price and Consensus
DXP Enterprises, Inc. Price and Consensus | DXP Enterprises, Inc. Quote
Zacks Rank & Stocks to Consider
With a market capitalization of approximately $656.7 million, DXP Enterprises currently carries a Zacks Rank #3 (Hold). Better-ranked machinery stocks include Parker-Hannifin Corporation (PH - Free Report) , Altra Industrial Motion Corp. and Barnes Group, Inc. (B - Free Report) . While Parker-Hannifin sports a Zacks Rank #1 (Strong Buy), both Altra Industrial Motion and Barnes Group carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Parker-Hannifin reported better-than-expected results in the last four quarters, with an average positive earnings surprise of 12.44%. Also, bottom-line expectations for fiscal 2017 and fiscal 2018 improved over the past 60 days.
Altra Industrial Motion’ financial performance was impressive in the last four quarters, with an average positive earnings surprise of 12.49%. Also, earnings estimates for 2017 and 2018 were revised upward over the last 60 days.
Barnes Group reported better-than-expected results in the last four quarters, with an average positive earnings surprise of 4.36%. Also, its earnings estimates for 2017 and 2018 improved in the last 60 days.
More Stock News: 8 Companies Verge on Apple-Like Run
Did you miss Apple's 9X stock explosion after they launched their iPhone in 2007? Now 2017 looks to be a pivotal year to get in on another emerging technology expected to rock the market. Demand could soar from almost nothing to $42 billion by 2025. Reports suggest it could save 10 million lives per decade which could in turn save $200 billion in U.S. healthcare costs.
A bonus Zacks Special Report names this breakthrough and the 8 best stocks to exploit it. Like Apple in 2007, these companies are already strong and coiling for potential mega-gains. Click to see them right now >>