NASDAQ$DXPE

DXP Enterprises Inc · Q2 2020 earnings

Q2 2020 earnings · · Investor relations

Briefing

DXP Enterprises reported second quarter results with strong free cash flow generation and debt reduction.

DXP Enterprises announced financial results for the second quarter ended June 30, 2020. Sales were $251.4 million, and earnings per diluted share was $0.12. The company generated $61.6 million in free cash flow and paid down debt by $15.6 million.

  • Sales were $251.4 million compared to $333.3 million for the second quarter of 2019.
  • Earnings per diluted share for the second quarter was $0.12 based upon 18.6 million diluted shares.
  • Free cash flow for the second quarter was $61.6 million, or 489.5% of EBITDA.
  • As of June 30, 2020, DXP had $78.8 million in cash and cash equivalents on the balance sheet.

Headline financials

Total Revenue

$251M

Previous: $333M-24.6%
EPS (adj)

$0.12

Previous: $0.73-83.6%
Adjusted EBITDA

$13.8M

Previous: $29.1M-52.6%
Capital Expenditures

-$5.13M

Previous: -$8.58M+40.2%
Free Cash Flow

-$2.99M

Previous: $4.88M-161.4%
Net Income

$2.14M

Previous: $13.5M-84.1%
Operating Income

$6.75M

Previous: $22.8M-70.4%
Gross Profit

$69.7M

Previous: $92M-24.2%
Cash & Equivalents

$78.7M

Previous: $25.4M+209.4%
Total Assets

$783M

Previous: $787M-0.4%
Stock-Based Comp

$983K

Previous: $524K+87.6%

Revenue & EPS history

DXP · Revenue · Quarterly

$251M

Q2 2020-24.6%vs Q2 2019
Beat estimate in 11 of 16 quarters(69%)
ActualEstimate

Revenue by segment

DXP · $251M total across 3 segments · Q2 2020

  • Service Centers
    $154M-23.1%
  • Innovative Pumping Solutions
    $60.5M-25.3%
  • Supply Chain Services
    $37.1M-29.1%

Forward guidance

Visibility on the economic outlook remains extremely limited. Specifically, the risk of a second wave of virus cases, the reinstitution of select geographic lockdowns, the upcoming election and the risk of lingering high unemployment create an uncertain economic environment that likely persists through the rest of 2020 based upon what we know today.

Headwinds

  • Risk of a second wave of virus cases
  • Reinstitution of select geographic lockdowns
  • Upcoming election
  • Risk of lingering high unemployment
  • Uncertain economic environment

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 2020

Historical avgQ2 2020

+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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