NASDAQ$DSGR
Distribution Solutions Group Inc · Q2 2023 earnings
Q2 2023 earnings · · Investor relations
Briefing
DSG's revenue increased, operating income more than tripled, and adjusted EBITDA rose, driven by contributions across market-leading businesses and strategic focus on shareholder value.
Distribution Solutions Group reported a strong second quarter with a 17.6% increase in revenue, a significant rise in GAAP operating income, and a substantial increase in adjusted EBITDA. The acquisition of Hisco was completed during the quarter, contributing to the TestEquity segment. The company is focused on growth segments and managing the demand environment.
- GAAP revenue increased by 17.6% to $378.0 million, including $43.4 million from recent acquisitions.
- GAAP operating income increased by $9.7 million to $13.8 million, representing 3.6% of GAAP revenue.
- Adjusted EBITDA increased by 26.7% to $40.1 million, or 10.6% of revenue.
- Diluted income per share was $0.14, compared to a diluted loss per share of $0.23 in the prior year; non-GAAP adjusted diluted earnings per share was $0.52.
Headline financials
Revenue & EPS history
DSG · Revenue · Quarterly
$378M
Revenue by segment
DSG · $363M total across 3 segments · Q2 2023
- TestEquity$136M+39.0%37.4%
- Lawson Products$119M+11.0%32.8%
- Gexpro Services$108M+8.5%29.8%
Forward guidance
The company is closely monitoring the demand environment and investing in initiatives to fuel profitable growth. The asset-light business model and focus on operating cash flows are expected to enhance long-term shareholder value.
Tailwinds
- Strategically focus on generating shareholder value
- Driving sales growth
- Improving profitability
- Generating incremental cash flow
- Focus on growing operating cash flows and accelerating returns on invested capital
Headwinds
- Closely monitoring the demand environment
- Continued tightening of monetary policy
- Certain end markets moderated somewhat during the second quarter
- Unanticipated difficulties or expenditures relating to the mergers
- Difficulties integrating the business of DSG and Hisco
Historical earnings impact
How earnings announcements have historically affected this stock's price.
Avg. return before/after earnings
Based on 20 quarterly earnings reports · overlaid with Q2 2023
+0.6%
Avg return
Earnings day
+1.0%
Avg return
5 days after
+1.8%
Avg return
30 days after
48%
31 / 65 earnings
Positive
+28.1%
Q2 2015
Best reaction
-26.3%
Q4 2025
Worst reaction
| Quarter | Report date | Reaction (Day 0) | +5 days | +30 days |
|---|---|---|---|---|
| Q1 2026 | +0.4% | +3.9% | +0.0% | |
| Q4 2025 | -26.3% | -29.6% | -10.4% | |
| Q3 2025 | -6.3% | -9.9% | -6.7% | |
| Q1 2025 | -7.0% | -7.2% | +4.6% | |
| Q4 2024 | +9.9% | +10.1% | -7.5% | |
| Q3 2024 | -11.1% | -12.7% | -2.8% | |
| Q2 2024 | -2.6% | -1.4% | +10.3% | |
| Q1 2024 | +6.7% | +10.3% | +3.3% | |
| Q4 2023 | -1.1% | -1.7% | +14.8% | |
| Q3 2023 | -19.5% | -20.4% | -12.8% | |
| Q2 2023 | -2.6% | -8.6% | -8.2% | |
| Q1 2023 | +5.8% | +1.5% | +9.2% | |
| Q4 2022 | -12.8% | -10.2% | -14.1% | |
| Q3 2022 | +18.7% | +28.5% | +21.0% | |
| Q2 2022 | +0.7% | +0.2% | -26.4% | |
| Q1 2022 | +2.7% | +6.2% | +4.5% | |
| Q4 2021 | +0.1% | -7.9% | -15.8% | |
| Q3 2021 | +1.0% | +3.1% | -0.4% | |
| Q2 2021 | -1.4% | -1.4% | -0.2% | |
| Q1 2021 | +0.9% | +2.9% | +16.5% | |
| Q4 2020 | +1.9% | +5.8% | -0.3% | |
| Q3 2020 | -0.3% | +9.8% | +17.8% | |
| Q2 2020 | +0.8% | +6.7% | +18.2% | |
| Q1 2020 | -3.9% | -5.0% | -8.7% | |
| Q4 2019 | -2.5% | -2.2% | -34.1% | |
| Q3 2019 | +6.4% | +7.3% | +11.0% | |
| Q2 2019 | +5.1% | +5.8% | -7.2% | |
| Q1 2019 | +3.6% | +4.0% | +24.7% | |
| Q4 2018 | +5.1% | +4.6% | +7.4% | |
| Q3 2018 | +2.3% | +8.8% | +2.0% | |
| Q2 2018 | +13.2% | +15.1% | +36.6% | |
| Q1 2018 | -2.4% | -5.0% | -1.8% | |
| Q4 2017 | -1.8% | -0.6% | +10.3% | |
| Q3 2017 | -4.4% | -2.1% | -1.4% | |
| Q2 2017 | +13.5% | +13.0% | +13.8% | |
| Q1 2017 | +2.4% | +9.3% | -6.0% | |
| Q4 2016 | +3.1% | +8.6% | -11.0% | |
| Q3 2016 | +13.1% | +13.5% | +37.2% | |
| Q2 2016 | -4.0% | -13.8% | -17.8% | |
| Q1 2016 | -3.9% | — | — | |
| Q4 2015 | -9.0% | — | — | |
| Q3 2015 | +10.5% | — | — | |
| Q2 2015 | +28.1% | — | — | |
| Q1 2015 | +2.0% | — | — | |
| Q4 2014 | -1.4% | — | — | |
| Q3 2014 | +19.0% | — | — | |
| Q2 2014 | +7.1% | — | — | |
| Q1 2014 | -2.0% | — | — | |
| Q4 2013 | -5.8% | — | — | |
| Q3 2013 | +6.0% | — | — | |
| Q2 2013 | -5.4% | — | — | |
| Q1 2013 | -0.3% | — | — | |
| Q4 2012 | +11.3% | — | — | |
| Q3 2012 | -2.1% | — | — | |
| Q2 2012 | -0.8% | — | — | |
| Q1 2011 | -3.0% | — | — | |
| Q1 2012 | +1.2% | — | — | |
| Q4 2011 | +1.3% | — | — | |
| Q3 2011 | -6.0% | — | — | |
| Q3 2010 | -6.0% | — | — | |
| Q4 2009 | -1.8% | — | — | |
| Q2 2011 | -1.8% | — | — | |
| Q2 2010 | -1.8% | — | — | |
| Q4 2010 | -1.8% | — | — | |
| Q1 2010 | +0.0% | — | — |
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