Seducing Stock: DXP Enterprises, Inc. (NASDAQ: DXPE)

DXP Enterprises, Inc. (NASDAQ: DXPE) changed -0.40% to recent value of $39.81. The stock transacted 47202 shares during most recent day however it has an average volume of 67.34K shares. It spotted trading -12.81% off 52-week high price. On the other end, the stock has been noted 45.77% away from the low price over the last 52-weeks.

DXP Enterprises, Inc. (DXPE) recently reported financial results for the third quarter ended September 30, 2019. The following are results for the three months and nine months ended September 30, 2019, contrast to the three months and nine months ended September 30, 2018.

Third Quarter 2019 financial highlights:

  • Sales increased 6.2 percent to $327.2M, contrast to $308.0M for the third quarter of 2018.
  • Earnings per diluted share for the third quarter was $0.71 based upon 18.4M diluted shares, contrast to $0.46 per share in the third quarter of 2018, based on 18.4M diluted shares.
  • Earnings before interest, taxes, depreciation and amortization (EBITDA) for the third quarter was $28.2M contrast to $23.2M for the third quarter of 2018, a raise of 21.4 percent.

David R. Little, Chairman and CEO commented, “DXP stated excellent sales and net income for the third quarter. We are happy with our results, which reflect continued execution of our strategy and a focus on being consumer driven experts in MROP solutions. Underlying demand in our end markets has wavered but we continue to take market share and focus on execution. We achieved 6.2 percent sales growth, maintained EBITDA margins and drove outstanding diluted earnings per share growth. During the third quarter of 2019, sales were $193.7M for Service Centers, $82.2M for Innovative Pumping Solutions and $51.3M for Supply Chain Services. Business section operating income increased 15.1 percent year-over-year. DXP’s third quarter 2019 total sales were $327.2M and EBITDA grew 21.4 percent year-over-year. Overall, we maintained margin performance, continued to improve cash flow and executed in a changing end market backdrop. We will remain focused on growing the top-line and bottom-line as we move into fiscal 2020.”

Kent Yee, CFO, commented, “We are happy with 6.2 percent sales growth and 8.6 percent EBITDA margins. This translated into $0.71 diluted earnings per share or 54.3 percent earnings growth year-over-year. Total debt outstanding as of September 30, 2019 was $245.0M. DXP’s secured leverage ratio or net debt to EBITDA was 2.0:1.0. Our strong execution with our focus on sales growth and margin improvement delivered strong earnings, generated cash flow and continues to position us drive shareholder value.”

DXPE has a gross margin of 27.70% and an operating margin of 6.20% while its profit margin remained 3.50% for the last 12 months. Its earnings per share (EPS) expected to touch remained 126.50% for this year while earning per share for the next 5-years is expected to reach at 20.00%.  The company has 17.89M of outstanding shares and 16.13M shares were floated in the market. According to the most recent quarter its current ratio was 2.7 that represents company’s ability to meet its current financial obligations. The price moved ahead of -0.22% from the mean of 20 days, 3.50% from mean of 50 days SMA and performed 8.85% from mean of 200 days price. Company’s performance for the week was 0.81%, 3.32% for month and YTD performance remained 43.00%.