Post Earnings Coverage as DXP Enterprises’ Q1 Results Topped Estimates

Upcoming AWS Coverage on Wesco Aircraft Post-Earnings Results

LONDON, UK / ACCESSWIRE / June 2, 2017 / Active Wall St. announces its post-earnings coverage on DXP Enterprises, Inc. (NASDAQ: DXPE). The Company released its financial results for the first quarter fiscal 2017 (Q1 FY17) on May 15, 2017. The Houston, Texas-based Company reported positive earnings per diluted share in Q1 FY17, beating market consensus estimates. Register with us now for your free membership at: http://www.activewallst.com/register/.

One of DXP Enterprises’ competitors within the Industrial Equipment Wholesale space, Wesco Aircraft Holdings, Inc. (NYSE: WAIR), announced on May 09, 2017, its financial results for Q2 FY17 which ended on March 31, 2017. AWS will be initiating a research report on Wesco Aircraft in the coming days.

Today, AWS is promoting its earnings coverage on DXPE; touching on WAIR. Get our free coverage by signing up to: http://www.activewallst.com/register/.

Earnings Reviewed

During the three months ended on March 31, 2017, DXP Enterprises reported sales of $238.53 million compared to $253.56 million recorded at the end of Q1 FY16. Sales numbers topped market expectations of $227 million.

The industrial products supplier reported net income attributable to common shareholder of $3.11 million, or $0.17 per diluted share, in Q1 FY17 against net loss attributable to common shareholder $5.14 million, or $0.35 loss per diluted share, in the prior year’s same period. Meanwhile, Wall Street had expected the Company to report net income of $0.03 per diluted share.

Operating Metrics

In the reported quarter, DXP Enterprises’ cost of sales was down to $174.01 million from $184.74 million in Q1 FY16. Furthermore, gross profit for Q1 FY17 came in at $64.52 million compared to $68.82 million in the year ago comparable period. Furthermore, the Company reported operating income during Q1 FY17 of $8.24 million against operating loss of $2.00 million in Q1 FY16.

DXP Enterprises posted income before income taxes of $4.81 million in Q1 FY17 compared to loss before income taxes of $5.26 million in Q1 FY16. The Company’s EBITDA increased to $15.48 million during the reported quarter from $5.70 million in Q1 FY16. Furthermore, the adjusted EBITDA for Q1 FY17 stood at $16.24 million versus $6.77 million in Q1 FY16.

Segment-Performance

The Company’s Service Centers segment’s sales fell 11.2% from $167.50 million in Q1 FY16 to $148.71 million in the reported quarter. However, the segment’s operating income grew to $13.34 million in Q1 FY17 from $9.54 million in Q1 FY16. Moreover, the segment’s operating income margin stood at 9.0% in the reported period.

During Q1 FY17, Innovative Pumping Solutions segment reported sales of $49.06 million, rising 3.4% from $47.43 million recorded in the prior year’s same quarter. The segment’s operating income surged to $3.51 million in Q1 FY17 from $0.31 million in Q1 FY16. Furthermore, the segment’s operating margin was 7.2% during Q1 FY17.

DXP Enterprises’ Supply Chain Services segment’s revenues were $40.76 million in Q1 FY17, up 5.5% from $38.63 million in Q1 FY16. The segment’s operating income also grew to $4.06 million in Q1 FY17 from $3.48 million in the previous year comparable quarter. Additionally, the segment’s operating for Q1 FY17 came in at 10.0%

Cash Flow & Balance Sheet

During Q1 FY17, DXP Enterprises used cash amounting to $2.19 million in its operating activities compared to cash used in operating activities of $7.59 million in the year ago same quarter. At the close of books on March 31, 2017, DXP Enterprises had cash balance of $1.00 million versus $1.59 million at the close of books on December 31, 2016. Additionally, the Company’s long-term debt declined to stand at $2.50 million as on March 31, 2017, from $173.33 million as on December 31, 2016.

Stock Performance

At the close of trading session on Thursday, June 01, 2017, DXP Enterprises’ stock price rose 1.90% to end the day at $36.51. A total volume of 148.41 thousand shares were exchanged during the session, which was above the 3-month average volume of 131.12 thousand shares. The stock has skyrocketed 4.79% in the last three months, 22.27% in the past six months, and 166.30% in the previous twelve months. The Company’s shares gained 5.09% since the beginning of the year. Shares of the Company have a PE ratio of 38.51. The stock currently has a market cap of $634.18 million.

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