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

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DXP Enterprises, Inc. (DXPE - Free Report) 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.


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


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 - Free Report) 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. 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 - Free Report) is another Zacks #2 Ranked company. The stock generated an average positive earnings surprise of 0.88% during the same time frame.

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