NASDAQ$DXPE

DXP Enterprises Inc · Q4 2022 earnings

Q4 2022 earnings · · Investor relations

Briefing

DXP Enterprises reported strong fourth quarter and fiscal year 2022 results, with sales growth and improved profitability.

DXP Enterprises reported a strong Q4 2022, with sales up 38.6% to $406.3 million and earnings per diluted share at $0.37, or $0.50 excluding one-time charges. Adjusted EBITDA increased to $31.6 million, representing 7.8% of sales. Fiscal year 2022 also saw significant growth, with sales reaching $1.5 billion and diluted EPS at $2.47.

  • Sales grew 38.6% to $406.3 million in the fourth quarter.
  • Earnings per diluted share for the fourth quarter was $0.37, or $0.50 excluding one-time charges.
  • Adjusted EBITDA for the fourth quarter of 2022 was $31.6 million, 7.8% of sales.
  • Fiscal year 2022 sales increased 32.9% to $1.5 billion.

Headline financials

Total Revenue

$406M

Previous: $293M+38.6%
EPS (adj)

$0.50

Previous: $0.05+900.0%
Adjusted EBITDA

$31.6M

Previous: $14.8M+114.1%
Adjusted EBITDA Margin

7.8%

No prior period
Capital Expenditures

$1.49M

Previous: $3.02M-50.6%
Free Cash Flow

$2.15M

Previous: $11.6M-81.5%
Net Income

$8.04M

Previous: $727K+1005.8%
Operating Income

$23.7M

Previous: $7.59M+212.6%
Gross Profit

$111M

Previous: $84.7M+31.4%
Cash & Equivalents

$46M

Previous: $49M-6.0%
Total Assets

$1.04B

Previous: $906M+14.5%
Stock-Based Comp

$482K

Previous: $469K+2.8%

Revenue & EPS history

DXP · Revenue · Quarterly

$406M

Q4 2022+38.6%vs Q4 2021
Beat estimate in 10 of 15 quarters(67%)
ActualEstimate

Revenue by segment

DXP · $406M total across 3 segments · Q4 2022

  • Service Centers
    $279M+34.3%
  • Supply Chain Services
    $65.7M+56.4%
  • Innovative Pumping Solutions
    $61.2M+41.8%

Forward guidance

As DXP enters fiscal 2023, they anticipate volatility and uncertainty leveling out. They express high confidence in their operating teams and flexible business model, focusing on controllable factors and positioning the company for continued growth through investments in automation and modernization.

Tailwinds

  • High confidence in operating teams.
  • Flexible business model.
  • Focus on controllable factors.
  • Positioning for continued growth.
  • Investments in automation and modernization.

Headwinds

  • Volatility.
  • Uncertainty leveling.
  • Sales per business day in January and February were $5.7 million and $5.9 million per day, respectively.
  • Navigating the current environment.
  • Near-term market dynamics.

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 Q4 2022

Historical avgQ4 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%

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