Industrial distributor DXP Enterprises (NASDAQ:DXPE) will be reporting results this Thursday morning. Here’s what to look for.
DXP beat analysts’ revenue expectations last quarter, reporting revenues of $527.4 million, up 12% year on year. It was a stunning quarter for the company, with a solid beat of analysts’ adjusted operating income estimates and an impressive beat of analysts’ revenue 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 11.5% year on year, slowing from the 15.5% increase it recorded in the same quarter last year.
The majority of analysts covering the company have reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to 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 Q1 results, giving us a hint as to what we can expect. VSE Corporation delivered year-on-year revenue growth of 26.8%, beating analysts’ expectations by 4.7%, and WESCO reported revenues up 13.8%, topping estimates by 3.7%. WESCO traded up 16.2% following the results.
Read our full analysis of VSE Corporation’s results here and WESCO’s results here.
There has been positive sentiment among investors in the maintenance and repair distributors segment, with share prices up 9.9% on average over the last month. DXP is up 25.5% during the same time and is heading into earnings with an average analyst price target of $139.50 (compared to the current share price of $179.11).
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