NASDAQ$DXPE

DXP Enterprises Inc · Q3 2021 earnings

Q3 2021 earnings · · Investor relations

Briefing

DXP Enterprises reported a year-over-year sales increase, driven by growth across all three business segments and strategic acquisitions.

DXP Enterprises announced third quarter 2021 financial results, featuring a 31.5% year-over-year increase in sales to $289.5 million and GAAP diluted EPS of $0.36. The company also reported $63.1 million in cash and cash equivalents and $5.2 million in free cash flow for the quarter. Strategic acquisitions, including Process Machinery and Premier Water, contributed to the company's performance.

  • Sales increased by 31.5% year-over-year, reaching $289.5 million.
  • GAAP diluted EPS was reported at $0.36, a significant improvement compared to the previous year.
  • Cash and cash equivalents totaled $63.1 million.
  • Free cash flow for the quarter amounted to $5.2 million.

Headline financials

Total Revenue

$289M

Previous: $220M+31.5%
EPS (adj)

$0.36

Previous: $0.16+125.0%
Adjusted EBITDA

$18.8M

Previous: $13.7M+37.4%
Capital Expenditures

-$2.98M

Previous: -$6.53M+54.3%
Free Cash Flow

$4.14M

Previous: -$41.2M+110.1%
Net Income

$7.13M

Previous: -$34.7M+120.6%
Operating Income

$11.2M

Previous: -$40.8M+127.4%
Gross Profit

$86.9M

Previous: $61.3M+41.8%
Cash & Equivalents

$63M

Previous: $97.3M-35.2%
Total Assets

$913M

Previous: $737M+23.9%
Stock-Based Comp

$514K

Previous: $983K-47.7%

Revenue & EPS history

DXP · Revenue · Quarterly

$289M

Q3 2021+31.5%vs Q3 2020
Beat estimate in 11 of 16 quarters(69%)
ActualEstimate

Revenue by segment

DXP · $289M total across 3 segments · Q3 2021

  • Service Centers
    $213M+28.9%
  • Supply Chain Services
    $40.5M+21.2%
  • Innovative Pumping Solutions
    $36.4M+66.6%

Forward guidance

DXP Enterprises is confident in its ability to deliver strong results to stakeholders during the remainder of 2021 and beyond, driven by ongoing positive market trends, a strong acquisition pipeline, and steady improvement in execution and capabilities.

Tailwinds

  • Ongoing positive market trends
  • Strong acquisition pipeline
  • Steady improvement in execution
  • Sequential increase in the IPS backlog
  • Teamwork and overall tone at DXP is moving in the right direction

Headwinds

  • Continued choppiness associated with COVID-19
  • Related supply chain issues
  • Decrease in cash has been primarily driven by our acquisition activity
  • Exposure to decreases in oil and natural gas prices
  • 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 Q3 2021

Historical avgQ3 2021

+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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