NASDAQ$DXPE

DXP Enterprises Inc · Q1 2023 earnings

Q1 2023 earnings · · Investor relations

Briefing

DXP Enterprises reported record sales and adjusted EBITDA, driven by strong growth across all segments and continued investment in growth strategies.

DXP Enterprises, Inc. announced strong first quarter 2023 results with record sales of $424.3 million, a 32.8% year-over-year increase. Net income was $17.6 million, and adjusted EBITDA reached $43.1 million. The company highlighted solid demand and strong performance across all three segments.

  • Sales increased 32.8 percent to $424.3 million compared to the first quarter of 2022.
  • Earnings per diluted share for the first quarter were $0.95 compared to $0.65 per share in the first quarter of 2022.
  • Adjusted EBITDA for the first quarter of 2023 was $43.1 million compared to $28.3 million for the first quarter of 2022.
  • Free cash flow for the first quarter of 2023 was $22.6 million compared to $1.9 million for the first quarter of 2022.

Headline financials

Total Revenue

$424M

Previous: $319M+32.8%
EPS (adj)

$0.95

Previous: $0.65+46.2%
Adjusted EBITDA

$43.1M

Previous: $28.3M+52.5%
Adjusted EBITDA Margin

10.2%

No prior period
Capital Expenditures

-$3.8M

Previous: -$740K-414.1%
Free Cash Flow

$13.8M

Previous: $11.9M+15.7%
Net Income

$17.6M

Previous: $12.6M+39.1%
Operating Income

$35.4M

Previous: $21.6M+64.2%
Gross Profit

$125M

Previous: $94.9M+31.8%
Cash & Equivalents

$58.3M

Previous: $36.6M+59.4%
Total Assets

$1.05B

Previous: $902M+16.7%
Stock-Based Comp

$476K

Previous: $370K+28.6%

Revenue & EPS history

DXP · Revenue · Quarterly

$424M

Q1 2023+32.8%vs Q1 2022
Beat estimate in 10 of 15 quarters(67%)
ActualEstimate

Revenue by segment

DXP · $424M total across 3 segments · Q1 2023

  • Service Centers
    $295M+34.9%
  • Supply Chain Services
    $67M+40.9%
  • Innovative Pumping Solutions
    $62M+16.9%

Forward guidance

The company expects to continue delivering exceptional performance and growth in the years ahead, driven by organic growth, acquisitions, and key initiatives.

Tailwinds

  • Strong, growing DXPeople
  • Robust acquisition pipeline
  • Drive to continue to create value for all stakeholders
  • Confident in ability to drive exceptional performance and growth
  • Expect to continue the momentum through fiscal 2023

Headwinds

  • Managing the slowing pace of inflation
  • Market challenges
  • Inconsistent market environment
  • Dependence on existing management
  • Economic risks related to the impact of COVID-19

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 Q1 2023

Historical avgQ1 2023

+1.9%

Avg return

Earnings day

+3.6%

Avg return

5 days after

+6.9%

Avg return

30 days after

48%

31 / 65 earnings

Positive

+55.7%

Q2 2016

Best reaction

-38.4%

Q1 2014

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026-17.5%-20.8%-13.4%
Q4 2025-3.4%-8.8%-11.3%
Q3 2025-17.8%-19.7%-21.5%
Q1 2025-2.9%+1.2%-7.6%
Q4 2024+0.3%+9.2%-6.4%
Q3 2024+22.3%+41.2%+47.4%
Q2 2024-0.0%+3.6%+4.2%
Q1 2024-4.7%-5.7%-10.5%
Q4 2023+29.0%+27.9%+59.0%
Q3 2023-7.2%-7.4%-4.3%
Q2 2023-15.3%-12.2%-6.4%
Q1 2023+17.0%+26.2%+51.3%
Q4 2022-0.5%+0.2%+16.7%
Q3 2022-9.0%-11.3%-16.4%
Q2 2022-16.7%-16.9%-22.9%
Q1 2022+16.8%+17.1%+42.7%
Q4 2021-13.3%-12.7%-20.1%
Q3 2021-2.0%-4.0%-5.3%
Q2 2021+4.6%+0.5%-5.3%
Q1 2021+0.2%+0.5%+4.9%
Q4 2020-3.7%+0.4%-9.4%
Q3 2020+24.5%+23.2%+39.4%
Q2 2020-1.1%+10.4%+5.5%
Q1 2020-1.0%-16.0%+72.8%
Q4 2019-37.0%-41.1%-59.2%
Q3 2019+13.7%+16.4%+11.9%
Q2 2019+8.8%+4.8%+6.3%
Q1 2019-14.6%-14.8%-22.1%
Q4 2018+31.0%+25.5%+32.3%
Q3 2018+22.1%+14.5%-0.2%
Q2 2018+16.4%+11.4%+7.6%
Q1 2018-0.2%-0.1%+4.5%
Q4 2017+23.9%+21.9%+17.7%
Q3 2017-13.9%-15.0%-7.9%
Q2 2017-7.0%-11.5%-22.1%
Q1 2017+27.0%+17.0%+9.8%
Q4 2016+16.1%+12.5%+11.4%
Q3 2016+15.3%+15.6%+40.5%
Q2 2016+55.7%+58.0%+56.3%
Q1 2016-19.9%
Q4 2015-4.4%
Q3 2015+0.8%
Q2 2015-12.8%
Q1 2015-2.8%
Q4 2014+3.3%
Q3 2014-6.0%
Q2 2014+9.2%
Q1 2014-38.4%
Q4 2013+6.3%
Q3 2013+8.3%
Q2 2013-0.2%
Q1 2013-16.0%
Q1 2010-0.3%
Q4 2012+10.9%
Q3 2012+3.7%
Q2 2012-0.7%
Q1 2011-0.5%
Q1 2012+8.3%
Q4 2009+2.9%
Q4 2011+2.9%
Q3 2010-0.1%
Q3 2011-0.1%
Q2 2011+3.5%
Q2 2010+3.5%
Q4 2010+3.5%

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