A Glimpse of DXP Enterprises's Earnings Potential

DXP Enterprises DXPE is preparing to release its quarterly earnings on Wednesday, 2025-05-07. Here's a brief overview of what investors should keep in mind before the announcement.

Analysts expect DXP Enterprises to report an earnings per share (EPS) of $1.20.

The market awaits DXP Enterprises's announcement, with hopes high for news of surpassing estimates and providing upbeat guidance for the next quarter.

It's important for new investors to understand that guidance can be a significant driver of stock prices.

Overview of Past Earnings

The company's EPS beat by $0.49 in the last quarter, leading to a 0.31% increase in the share price on the following day.

Here's a look at DXP Enterprises's past performance and the resulting price change:

Tracking DXP Enterprises's Stock Performance

Shares of DXP Enterprises were trading at $91.29 as of May 05. Over the last 52-week period, shares are up 64.65%. Given that these returns are generally positive, long-term shareholders are likely bullish going into this earnings release.

Analyst Observations about DXP Enterprises

For investors, grasping market sentiments and expectations in the industry is vital. This analysis explores the latest insights regarding DXP Enterprises.

The consensus rating for DXP Enterprises is Outperform, derived from 1 analyst ratings. An average one-year price target of $95.0 implies a potential 4.06% upside.

Understanding Analyst Ratings Among Peers

In this analysis, we delve into the analyst ratings and average 1-year price targets of Xometry, Distribution Solns Gr and Dnow, three key industry players, offering insights into their relative performance expectations and market positioning.

• Analysts currently favor an Outperform trajectory for Xometry, with an average 1-year price target of $33.71, suggesting a potential 63.07% downside.
• Analysts currently favor an Outperform trajectory for Distribution Solns Gr, with an average 1-year price target of $44.0, suggesting a potential 51.8% downside.
• Analysts currently favor an Buy trajectory for Dnow, with an average 1-year price target of $19.0, suggesting a potential 79.19% downside.

Comprehensive Peer Analysis Summary

In the peer analysis summary, key metrics for Xometry, Distribution Solns Gr and Dnow are highlighted, providing an understanding of their respective standings within the industry and offering insights into their market positions and comparative performance.

Key Takeaway:

DXP Enterprises ranks at the top for Revenue Growth among its peers. It is in the middle for Gross Profit. For Return on Equity, DXP Enterprises is at the bottom compared to its peers.

All You Need to Know About DXP Enterprises

DXP Enterprises Inc is a distributor of products and services to industrial customers in the United States, Canada, Mexico, and Dubai. The company's reportable segments include Service Centers, Innovative Pumping Solutions, and Supply Chain Services. It generates maximum revenue from the Service Centers segment. The company offers pumping solutions, supply chain services and maintenance, repair, operating, and production services for rotating equipment, bearings, power transmissions, industrial supplies, and safety products. It serves the General Industrial, Oil & Gas, Food & Beverage, Water & Wastewater, Chemical, Transportation, Aerospace & Others.

DXP Enterprises: Financial Performance Dissected

Market Capitalization Analysis: Below industry benchmarks, the company's market capitalization reflects a smaller scale relative to peers. This could be attributed to factors such as growth expectations or operational capacity.

Revenue Growth: DXP Enterprises's revenue growth over a period of 3 months has been noteworthy. As of 31 December, 2024, the company achieved a revenue growth rate of approximately 15.69%. This indicates a substantial increase in the company's top-line earnings. In comparison to its industry peers, the company stands out with a growth rate higher than the average among peers in the Industrials sector.

Net Margin: The company's net margin is a standout performer, exceeding industry averages. With an impressive net margin of 4.53%, the company showcases strong profitability and effective cost control.

Return on Equity (ROE): DXP Enterprises's ROE lags behind industry averages, suggesting challenges in maximizing returns on equity capital. With an ROE of 5.17%, the company may face hurdles in achieving optimal financial performance.

Return on Assets (ROA): The company's ROA is a standout performer, exceeding industry averages. With an impressive ROA of 1.65%, the company showcases effective utilization of assets.

Debt Management: With a below-average debt-to-equity ratio of 1.6, DXP Enterprises adopts a prudent financial strategy, indicating a balanced approach to debt management.

To track all earnings releases for DXP Enterprises visit their earnings calendar on our site.

This article was generated by Benzinga's automated content engine and reviewed by an editor.