NASDAQ$DXPE

DXP Enterprises Inc · Q2 2022 earnings

Q2 2022 earnings · · Investor relations

Briefing

Reported a strong second quarter with significant sales growth and improved profitability.

DXP Enterprises reported a strong second quarter in 2022, marked by a 28.7% increase in sales to $367.8 million compared to the previous year. The company's net income rose to $14.4 million, and diluted EPS reached $0.74. Adjusted EBITDA also saw substantial growth, reaching $32.6 million, reflecting broad-based strength across the company.

  • Sales increased by 28.7% year-over-year, reaching $367.8 million.
  • Net income increased to $14.4 million, compared to $8.1 million in Q2 2021.
  • Earnings per diluted share were $0.74, up from $0.41 in the prior year.
  • Adjusted EBITDA grew to $32.6 million, reflecting a 43.8% increase.

Headline financials

Total Revenue

$368M

Previous: $286M+28.7%
EPS (adj)

$0.74

Previous: $0.40+85.0%
Adjusted EBITDA

$32.6M

Previous: $22.6M+44.2%
Adjusted EBITDA Margin

8.9%

No prior period
Capital Expenditures

-$1.85M

Previous: -$1.53M-21.1%
Free Cash Flow

$12.6M

Previous: $6.59M+90.9%
Net Income

$14.4M

Previous: $8.12M+77.8%
Operating Income

$25.9M

Previous: $14.8M+74.6%
Gross Profit

$104M

Previous: $85.3M+22.3%
Cash & Equivalents

$20.6M

Previous: $79.2M-74.0%
Total Assets

$984M

Previous: $902M+9.1%
Stock-Based Comp

$493K

Previous: $460K+7.2%

Revenue & EPS history

DXP · Revenue · Quarterly

$368M

Q2 2022+28.7%vs Q2 2021
Beat estimate in 10 of 15 quarters(67%)
ActualEstimate

Revenue by segment

DXP · $368M total across 3 segments · Q2 2022

  • Service Centers
    $251M+19.9%
  • Supply Chain Services
    $58.9M+49.9%
  • Innovative Pumping Solutions
    $57.8M+57.5%

Forward guidance

DXP Enterprises anticipates a strong second half of 2022, driven by positive demand trends, strategic acquisitions, and ongoing strategic initiatives, positioning the company for a robust finish to 2022 and setting the stage for a better 2023.

Tailwinds

  • Strong demand trends are expected to continue.
  • Acquisitions are expected to contribute to growth.
  • Strategic initiatives are expected to drive performance.
  • Momentum in the business is expected to continue.
  • Diversification of end market and business model exposure.

Headwinds

  • Macro-environment continues to remain dynamic.
  • Inflationary pressures are expected to continue.
  • Potential decreases in oil and natural gas prices.
  • Economic risks related to the impact of COVID-19.
  • Dependence on existing management.

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 2022

Historical avgQ2 2022

+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%

Discussion

Share your read of this quarter. Sign-in carries your eToro identity.

Join the conversation

Sign in with eToro to post your read of this quarter and vote on others'.

Sign in with eToro