The 10-second takeaway
For the quarter ended Dec. 31 (Q4), DXP Enterprises beat expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue grew significantly and GAAP earnings per share expanded significantly.
Gross margins shrank, operating margins expanded, net margins expanded.
DXP Enterprises chalked up revenue of $218.4 million. The four analysts polled by S&P Capital IQ predicted revenue of $209.8 million on the same basis. GAAP reported sales were 29% higher than the prior-year quarter's $169.7 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $0.61. The four earnings estimates compiled by S&P Capital IQ averaged $0.53 per share. GAAP EPS of $0.61 for Q4 were 56% higher than the prior-year quarter's $0.39 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 28.7%, 60 basis points worse than the prior-year quarter. Operating margin was 7.3%, 120 basis points better than the prior-year quarter. Net margin was 4.2%, 70 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $234.6 million. On the bottom line, the average EPS estimate is $0.63.
Next year's average estimate for revenue is $980.0 million. The average EPS estimate is $2.80.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 262 members out of 281 rating the stock outperform, and 19 members rating it underperform. Among 80 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 76 give DXP Enterprises a green thumbs-up, and four give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on DXP Enterprises is buy, with an average price target of $37.25.
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Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy