Machinery company DXP Enterprises, Inc. (DXPE - Free Report) announced the completion of divestiture of its non-core assets, master distribution business of fasteners to Houston Wire & Cable Company (HWCC - Free Report) . The asset disposition was valued at approximately $31 million in cash.
As revealed, DXP Enterprises operates its fasteners distribution business through Vertex Corporate Holdings, Inc. The financial results of Vertex will be excluded from the company’s fourth-quarter 2016 results.
DXP Enterprises expects that sale of non-core assets will help it better align its business operations with current market demands. It also expects to optimally use its resources for the existing core operations.
DXP Enterprises 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, with a market capitalization of $423 million, currently sports a Zacks Rank #1 (Strong Buy). Over the last 60 days, the Zacks Consensus Estimate on DXP Enterprises has improved from a loss of 38 cents per share to earnings of 30 cents per share for 2016 while increased by 57.1% to 44 cents per share for 2017.
Other Stocks to Consider
Other stocks worth mentioning in the machinery industry include Nordson Corporation (NDSN - Free Report) and Barnes Group (B - Free Report) . While Nordson Corporation sports a Zacks Rank #1, Barnes Group carries a Zacks Rank #2 (Buy). 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.
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