DXP Enterprises (DXPE) Tops Q3 EPS by 9c, Revenues Beat

DXP Enterprises (NASDAQ: DXPE) reported Q3 EPS of $0.46, $0.09 better than the analyst estimate of $0.37. Revenue for the quarter came in at $308 million versus the consensus estimate of $301.81 million.

David R. Little, Chairman and CEO commented, “We are pleased with our performance in the third quarter as the team maintained momentum and delivered strong results. The oil and gas and industrial economy remain firm with all key indicators remaining positive. We achieved 22.3 percent sales growth, solid EBITDA margins and outstanding diluted earnings per share growth. DXP’s third quarter 2018 sales were $308.0 million. Organic sales for the quarter increased 17.5 percent year-over-year and acquisitions added $12.1 million in sales. EBITDA grew 71.9 percent year-over-year. In terms of our business segments for the third quarter of 2018, sales were $187.8 million for Service Centers, $76.7 million for Innovative Pumping Solutions and $43.6 million for Supply Chain Services. Business segment operating income increased 55.6 percent year-over-year. Overall, DXP has been trending around 20 percent growth year-over-year which is consistent with our expectations. With the outlook for global economic growth and oil and industrial demand remaining solid, we still look to show improvement in organic and acquisition sales growth and margins. We believe we are well positioned to outgrow the market and to generate improved operating margins and returns for the benefit of our shareholders as we begin to move into 2019.”

Kent Yee, CFO, remarked, “Our third quarter year-over-year financial results continue to reflect the growth we have been experiencing in fiscal 2018 and reflect our financial goals to grow 20 percent year-over-year, through a combination of organic and acquisition sales. On a sales per day basis, DXP continues to show sequential increases and has experienced eight consecutive quarters of sales per day per quarter increases. Total debt outstanding as of September 30, 2018 was $249.6 million. DXP’s secured leverage ratio or net debt to EBITDA ratio was 2.7:1.0. We expect to finish fiscal 2018 with strong momentum continuing into fiscal 2019.”

For earnings history and earnings-related data on DXP Enterprises (DXPE) click here.

You May Also Be Interested In

• Nomura/Instinet Upgrades Genting Singapore (GENS:SP) (GIGNY) to Neutral
• LogicBio Therapeutics (LOGC) Misses Q2 EPS by 10c
• Gemini Space Station, Inc. (GEMI) Misses Q2 EPS by 32c