Industrial distributor DXP Enterprises (NASDAQ: DXPE) will be announcing earnings results this Thursday before market open. Here’s what investors should know.
DXP beat analysts’ revenue expectations last quarter, reporting revenues of $576.5 million, up 15.6% year on year. It was an exceptional quarter for the company, with a beat of analysts’ EPS estimates.
Is DXP a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, the market is expecting DXP’s revenue to grow 13.8% year on year, improving from the 8.6% increase it recorded in the same quarter last year.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business will stay the course heading into earnings. DXP has missed Wall Street’s revenue estimates multiple times over the last two years.
Looking at DXP’s peers in the maintenance and repair distributors segment, some have already reported their Q3 results, giving us a hint as to what we can expect. Transcat delivered year-on-year revenue growth of 18%, beating analysts’ expectations by 5%, and WESCO reported revenues up 16.6%, topping estimates by 5.1%. WESCO traded down 1.2% following the results.
Read our full analysis of Transcat’s results here and WESCO’s results here.
Investors in the maintenance and repair distributors segment have had steady hands going into earnings, with share prices flat over the last month. DXP is down 8.4% during the same time and is heading into earnings with an average analyst price target of $200 (compared to the current share price of $179.41).
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