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It does not take into account revenue and earnings forecasts

  • Income: $412.6 million, down 2.7% year-over-year from $424.3 million, below estimates of $457.0 million.

  • Net income: $11.3 million, a significant decrease from the previous year’s $17.6 million, which was below the $16.0 million estimate.

  • EPS (diluted non-GAAP): $0.74 compared to $0.95 year-over-year, below the $0.94 estimate.

  • Free cash flow: An increase to $24.1 million, up 6.4% from $22.6 million the previous year.

  • Adjusted EBITDA: $40.3 million, compared to $43.1 million year-over-year, with margin falling to 9.8% from 10.2%.

  • Acquisitions: Completed the acquisitions of Hennesy Mechanical Sales, Kappe Associates and Pro-Seal, Inc., expanding service offerings and market reach.

  • Cash position: Ended the quarter with $139.7 million in cash, supporting strategic initiatives and operational needs.

DXP Enterprises Inc (NASDAQ:DXPE), a leading distributor of products and services to industrial customers, issued its 8-K on May 8, 2024, providing detailed information on financial results for the first quarter ended March 31, 2024. The company is based in The Houston company recorded a decline in sales and earnings per share compared to the previous year, while implementing strategic acquisitions aimed at strengthening its market position.

DXP Enterprises Inc (DXPE) Reports First Quarter 2024 Earnings: Excludes Revenue and Earnings ForecastsDXP Enterprises Inc (DXPE) Reports First Quarter 2024 Earnings: Excludes Revenue and Earnings Forecasts

DXP Enterprises Inc (DXPE) Reports First Quarter 2024 Earnings: Excludes Revenue and Earnings Forecasts

Informations about company

DXP Enterprises operates through three primary segments: Service Centers, Innovative Pumping Solutions and Supply Chain Services, with the majority of revenues generated from the Service Centers segment. The company offers a comprehensive range of products and services, including pump solutions, supply chain services and maintenance for a variety of industrial applications. Its broad market reach covers sectors such as general industrial, oil and gas and others.

Information about financial results

In the first quarter of 2024, DXP ​​reported sales of $412.6 million, a slight increase of 1.4% from $407.0 million in the fourth quarter of 2023, but a decline of 2.7% from $424.3 million in the first quarter of 2023. The company’s net income was $11.3 million, significantly lower than the $17.6 million recorded in the same quarter last year. Earnings per diluted share were $0.67, compared to $0.95 in Q1 2023, with adjusted EPS of $0.74.

The company’s adjusted EBITDA for the quarter was $40.3 million, down from $43.1 million year-over-year. Adjusted EBITDA margin also decreased slightly from 10.2% to 9.8%. Despite these challenges, DXP ​​achieved 6.4% year-over-year free cash flow growth of $24.1 million and completed three strategic acquisitions, expanding its service capabilities and market reach.

Strategic moves and market position

David R. Little, president and CEO of DXP, highlighted the company’s sequential sales growth and solid free cash flow generation. He noted the positive impact of recent acquisitions and expressed optimism about the company’s performance trajectory for the remainder of 2024. Chief Financial Officer Kent Yee emphasized the importance of the acquisitions and the company’s strong free cash flow, which supports its growth initiatives.

The balance sheet remains solid, with $139.7 million in cash and a secured leverage ratio of 2.3:1.0. This financial stability is crucial as DXP aims to drive organic and acquisition-led growth throughout the fiscal year.

Segment performance

Results varied across DXP’s business segments. The Service Centers Segment recorded a decline in revenues by 5.7% year-on-year, while the Innovative Pumping Solutions segment increased by 21.0%. The Supply Chain Services segment saw revenue decline by 7.5%. These mixed results reflect the diverse challenges and opportunities across DXP’s business areas.

Application

Despite missing analyst expectations in both revenue and earnings per share, DXP ​​Enterprises Inc (NASDAQ:DXPE) is making strategic moves to strengthen its market position through acquisitions and leveraging solid free cash flow. The company’s diversified service offering and strategic focus on growth areas position it to potentially rebound and capitalize on market opportunities in the coming quarters.

Read the full publication on earnings of PLN 8,000. (here) published by DXP Enterprises Inc for more details.

This article first appeared on GuruFocus.