[First Quarter 2025 Results Overview](index=1&type=section&id=First%20Quarter%202025%20Results%20Overview) DXP Enterprises, Inc. reported strong financial performance in Q1 2025, driven by significant sales and net income growth, alongside strategic acquisition and positive management outlook [Financial Highlights](index=1&type=section&id=Financial%20Highlights) DXP Enterprises, Inc. achieved significant financial growth in Q1 2025, with double-digit year-over-year increases in sales and net income, alongside substantial improvements in adjusted EBITDA and diluted EPS, reflecting the company's business resilience Financial Performance Overview | Metric | Q1 2025 | Q1 2024 | Y-o-Y Change | Q4 2024 | Q-o-Q Change | | :-------------------------------- | :------------- | :------------- | :--------- | :------------- | :--------- | | Sales ($ millions) | $476.6 | $412.6 | 15.5% | - | - | | Organic Sales ($ millions) | - | - | 11.1% | - | - | | Net Income ($ millions) | $20.6 | $11.3 | 82.3% | $21.4 | -3.7% | | GAAP Diluted EPS ($) | $1.25 | $0.67 | 86.6% | - | - | | Adjusted Diluted EPS ($) | $1.26 | $0.70 | 80.0% | - | - | | Adjusted EBITDA ($ millions) | $52.5 | $40.3 | 30.3% | $50.3 | 4.4% | | Adjusted EBITDA Margin (%) | 11.0% | 9.8% | 1.2 ppt | 10.7% | 0.3 ppt | | Ending Cash ($ millions) | $114.3 | - | - | - | - | | Total Debt ($ millions) | $647.3 | - | - | - | - | | Net Debt to EBITDA Ratio | 2.50:1.0 | - | - | - | - | - The company completed the acquisition of Arroyo Process Equipment, further expanding its business scope[5](index=5&type=chunk) [Management Commentary](index=1&type=section&id=Management%20Commentary) Management expressed satisfaction with Q1 results, highlighting business resilience and continuous sales growth, anticipating increased project backlog and diversified end markets to drive H2 growth, supported by a strong balance sheet - Chairman and CEO David R. Little stated that Q1 results reflect the resilience and durability of DXP's business, expressing satisfaction with continuous sales growth and strong gross margins, and expecting sustained sales and profit growth for the remainder of 2025[4](index=4&type=chunk) - CFO Kent Yee noted market bright spots and anticipated H2 growth driven by increased project backlog and diversified end markets, with a strong balance balance sheet including **$114.3 million** in cash and a **2.50:1.0** net debt to EBITDA ratio[4](index=4&type=chunk) [Company Information](index=2&type=section&id=Company%20Information) This section provides an overview of DXP Enterprises, Inc.'s business model, service offerings, and details for the upcoming investor conference call [About DXP Enterprises, Inc.](index=2&type=section&id=About%20DXP%20Enterprises%2C%20Inc.) DXP Enterprises, Inc. is a leading distributor of products and services, providing value-added and total cost savings solutions to industrial customers across North America and Dubai, specializing in innovative pumping solutions, supply chain services, and MROP services - DXP Enterprises, Inc. is a leading distributor of products and services, providing value-added and total cost savings solutions to industrial customers across North America and Dubai[9](index=9&type=chunk) - The company offers innovative pumping solutions, supply chain services, and maintenance, repair, operating, and production (MROP) services, leveraging extensive product knowledge and technical expertise in rotating equipment, bearings, power transmission, metalworking, industrial supplies, and safety products[9](index=9&type=chunk) - DXP's business segments include Service Centers, Innovative Pumping Solutions, and Supply Chain Services[9](index=9&type=chunk) [Conference Call Details](index=2&type=section&id=Conference%20Call%20Details) DXP Enterprises, Inc. management will host a conference call on May 8, 2025, to discuss financial results, with investors able to access the webcast and slide presentation via the company's investor relations website - DXP management will host a conference call on May 8, 2025, at 10:30 AM CT to discuss the company's financial results[7](index=7&type=chunk) - Investors can listen to the webcast and access the slide presentation through the investor relations section of the company's website at https://ir.dxpe.com[7](index=7&type=chunk)[8](index=8&type=chunk) [Unaudited Condensed Consolidated Financial Statements](index=4&type=section&id=Unaudited%20Condensed%20Consolidated%20Financial%20Statements) This section presents DXP's Q1 2025 unaudited financial statements, including detailed operating results and balance sheet information, reflecting significant year-over-year growth [Statements of Operations](index=4&type=section&id=Statements%20of%20Operations) In Q1 2025, DXP saw significant growth in sales and net income, with increased cost of sales and SG&A expenses, but a larger rise in operating income and income before taxes, leading to a substantial year-over-year increase in net income Condensed Consolidated Statements of Operations | Metric ($ thousands) | Three Months Ended March 31, 2025 | Three Months Ended March 31, 2024 | Y-o-Y Change | | :--------------------------------- | :-------------------- | :-------------------- | :------- | | Sales | 476,569 | 412,635 | 15.5% | | Cost of Sales | 326,304 | 288,753 | 13.0% | | Gross Profit | 150,265 | 123,882 | 21.3% | | Selling, General and Administrative Expenses | 109,750 | 94,751 | 15.8% | | Operating Income | 40,515 | 29,131 | 39.1% | | Interest Expense | 14,660 | 15,544 | -5.7% | | Income Before Income Taxes | 27,173 | 15,555 | 74.7% | | Provision for Income Taxes | 6,584 | 4,223 | 55.9% | | Net Income | 20,589 | 11,332 | 81.7% | | Diluted Earnings Per Share | 1.25 | 0.67 | 86.6% | | Diluted Weighted Average Common Shares | 16,538 | 16,968 | -2.5% | [Balance Sheets](index=5&type=section&id=Balance%20Sheets) As of March 31, 2025, DXP's total assets increased from December 31, 2024, primarily due to higher accounts receivable, inventory, and net property and equipment, while cash balances decreased, and total liabilities and equity both rose Condensed Consolidated Balance Sheets | Metric ($ thousands) | March 31, 2025 | December 31, 2024 | Q-o-Q Change | | :--------------------------------- | :------------- | :------------- | :------- | | **Assets** | | | | | Cash | 114,283 | 148,320 | -22.9% | | Accounts Receivable, Net | 357,764 | 339,365 | 5.4% | | Inventory | 109,876 | 103,113 | 6.6% | | Total Current Assets | 661,756 | 661,874 | 0.0% | | Property and Equipment, Net | 97,658 | 81,556 | 19.7% | | Goodwill | 459,963 | 452,343 | 1.7% | | Total Assets | 1,382,512 | 1,349,494 | 2.4% | | **Liabilities and Equity** | | | | | Total Current Liabilities | 245,417 | 243,984 | 0.6% | | Long-Term Debt, Net | 620,901 | 621,684 | -0.1% | | Total Liabilities | 937,853 | 926,706 | 1.2% | | Total DXP Enterprises, Inc. Equity | 444,659 | 422,788 | 5.2% | | Total Liabilities and Equity | 1,382,512 | 1,349,494 | 2.4% | [Segment Performance](index=6&type=section&id=Segment%20Performance) DXP's Q1 2025 segment performance shows robust sales and operating income growth across all business units, particularly in Innovative Pumping Solutions [Sales by Business Segment](index=6&type=section&id=Sales%20by%20Business%20Segment) In Q1 2025, all business segments achieved year-over-year sales growth, with the Innovative Pumping Solutions segment showing the strongest increase and Service Centers contributing the largest sales volume Sales by Business Segment | Business Segment ($ thousands) | Three Months Ended March 31, 2025 | Three Months Ended March 31, 2024 | Y-o-Y Change | | :--------------------- | :-------------------- | :-------------------- | :------- | | Service Centers | 327,075 | 288,435 | 13.4% | | Innovative Pumping Solutions | 86,182 | 62,216 | 38.5% | | Supply Chain Services | 63,312 | 61,984 | 2.1% | | **Total Sales** | **476,569** | **412,635** | **15.5%** | [Operating Income by Business Segment](index=6&type=section&id=Operating%20Income%20by%20Business%20Segment) In Q1 2025, all business segments reported year-over-year operating income growth, with the Innovative Pumping Solutions segment achieving the highest growth rate and Service Centers contributing the largest operating income Operating Income by Business Segment | Business Segment ($ thousands) | Three Months Ended March 31, 2025 | Three Months Ended March 31, 2024 | Y-o-Y Change | | :--------------------- | :-------------------- | :-------------------- | :------- | | Service Centers | 47,045 | 40,320 | 16.7% | | Innovative Pumping Solutions | 13,406 | 6,970 | 92.3% | | Supply Chain Services | 5,564 | 5,262 | 5.7% | | **Total Segment Operating Income** | **66,015** | **52,552** | **25.6%** | [Reconciliation of Operating Income for Reportable Segments](index=6&type=section&id=Reconciliation%20of%20Operating%20Income%20for%20Reportable%20Segments) The company reconciles total operating income from reportable segments to consolidated operating income by deducting intangible asset amortization and corporate expenses, further adjusting for interest expense and other income to arrive at income before taxes Reconciliation of Operating Income for Reportable Segments | Metric ($ thousands) | Three Months Ended March 31, 2025 | Three Months Ended March 31, 2024 | | :--------------------------------- | :-------------------- | :-------------------- | | Reportable Segment Operating Income | 66,015 | 52,552 | | Less: Amortization of Intangible Assets | 5,355 | 4,369 | | Less: Corporate Expenses | 20,145 | 19,052 | | **Operating Income** | **40,515** | **29,131** | | Less: Interest Expense | 14,660 | 15,544 | | Plus: Other Income, Net | (1,318) | (1,968) | | **Income Before Income Taxes** | **27,173** | **15,555** | [Non-GAAP Financial Measures](index=2&type=section&id=Non-GAAP%20Financial%20Measures) This section defines and reconciles DXP's non-GAAP financial metrics, including EBITDA, Adjusted EBITDA, Organic Sales, Free Cash Flow, and Adjusted Net Income, providing additional insights into operational performance [Definitions and Rationale](index=8&type=section&id=Definitions%20and%20Rationale) DXP uses non-GAAP metrics like EBITDA, Adjusted EBITDA, Free Cash Flow, Organic Sales, and Adjusted Net Income to supplement GAAP reporting, providing a clearer view of operational performance, liquidity, and strategic execution by excluding non-cash and non-recurring items - EBITDA is defined as net income attributable to DXP Enterprises, Inc. plus interest, taxes, depreciation, and amortization; Adjusted EBITDA further subtracts stock-based compensation expense and all other non-cash expenses, adjustments, and non-recurring items[22](index=22&type=chunk) - The company believes EBITDA provides additional information regarding operating performance and the effectiveness of operating strategies by eliminating the impact of non-cash depreciation and amortization expenses, and non-core operating items such as interest expense and income taxes[11](index=11&type=chunk) - Free Cash Flow is defined as net cash provided by operating activities less purchases of property and equipment; the company considers Free Cash Flow an important liquidity measure, indicating cash available for acquisitions, investments, debt repayment, and stock repurchases[11](index=11&type=chunk)[26](index=26&type=chunk) - Organic Sales include sales from locations and acquired businesses owned for at least twelve months, excluding sales from acquisitions owned for less than twelve months[24](index=24&type=chunk) [EBITDA and Adjusted EBITDA Reconciliation](index=7&type=section&id=EBITDA%20and%20Adjusted%20EBITDA%20Reconciliation) In Q1 2025, DXP's EBITDA and Adjusted EBITDA both saw significant growth, with Adjusted EBITDA margin also improving year-over-year, indicating an enhancement in the company's core profitability Reconciliation of EBITDA and Adjusted EBITDA | Metric ($ thousands) | Three Months Ended March 31, 2025 | Three Months Ended March 31, 2024 | Y-o-Y Change | | :--------------------- | :-------------------- | :-------------------- | :------- | | Income Before Income Taxes | 27,173 | 15,555 | 74.7% | | Plus: Interest Expense | 14,660 | 15,544 | -5.7% | | Plus: Depreciation and Amortization | 9,134 | 7,538 | 21.2% | | **EBITDA** | **50,967** | **38,637** | **31.9%** | | Plus: Other Non-Recurring Items | 235 | 842 | -72.1% | | Plus: Stock-Based Compensation Expense | 1,317 | 864 | 52.4% | | **Adjusted EBITDA** | **52,519** | **40,343** | **30.2%** | | Operating Income Margin (%) | 8.5% | 7.1% | 1.4 ppt | | EBITDA Margin (%) | 10.7% | 9.4% | 1.3 ppt | | Adjusted EBITDA Margin (%) | 11.0% | 9.8% | 1.2 ppt | [Organic Sales Reconciliation](index=8&type=section&id=Organic%20Sales%20Reconciliation) In Q1 2025, DXP's total sales and organic sales both increased, with acquisitions contributing **$31.112 million** in sales, and organic sales growing by **11.1%** year-over-year Organic Sales Reconciliation | Metric ($ thousands) | Three Months Ended March 31, 2025 | Three Months Ended March 31, 2024 | Y-o-Y Change | | :--------------------- | :-------------------- | :-------------------- | :------- | | Service Centers Sales | 327,075 | 288,435 | 13.4% | | Innovative Pumping Solutions Sales | 86,182 | 62,216 | 38.5% | | Supply Chain Services Sales | 63,312 | 61,984 | 2.1% | | **DXP Total Sales** | **476,569** | **412,635** | **15.5%** | | Acquisition Sales | 31,112 | 11,775 | 164.2% | | **Organic Sales** | **445,457** | **400,860** | **11.1%** | | Business Days | 63 | 63 | 0.0% | | Sales Per Business Day | 7,565 | 6,550 | 15.5% | | Organic Sales Per Business Day | 7,071 | 6,363 | 11.1% | [Free Cash Flow Reconciliation](index=8&type=section&id=Free%20Cash%20Flow%20Reconciliation) In Q1 2025, DXP's Free Cash Flow was negative **$16.941 million**, primarily due to a significant decrease in cash flow from operating activities and increased purchases of property and equipment Free Cash Flow Reconciliation | Metric ($ thousands) | Three Months Ended March 31, 2025 | Three Months Ended March 31, 2024 | Y-o-Y Change | | :--------------------- | :-------------------- | :-------------------- | :------- | | Net Cash Provided by Operating Activities | 2,973 | 26,989 | -89.0% | | Less: Purchases of Property and Equipment | (19,914) | (2,894) | 588.1% | | **Free Cash Flow** | **(16,941)** | **24,095** | **-170.3%** | [Adjusted Net Income and EPS Reconciliation](index=8&type=section&id=Adjusted%20Net%20Income%20and%20EPS%20Reconciliation) In Q1 2025, DXP's Adjusted Net Income and Adjusted Diluted EPS were higher than GAAP reported net income and diluted EPS, primarily due to adjustments for non-recurring items and tax impacts Reconciliation of Adjusted Net Income and Adjusted Diluted EPS | Metric ($ thousands) | Three Months Ended March 31, 2025 | Three Months Ended March 31, 2024 | Y-o-Y Change | | :--------------------------------- | :-------------------- | :-------------------- | :------- | | Net Income | 20,589 | 11,332 | 81.7% | | Other Non-Recurring Items | 235 | 842 | -72.1% | | Tax Adjustment | (57) | (256) | -77.8% | | **Adjusted Net Income** | **20,767** | **11,918** | **74.2%** | | Diluted Weighted Average Common Shares | 16,538 | 16,968 | -2.5% | | Diluted Earnings Per Share | $1.25 | $0.67 | 86.6% | | **Adjusted Diluted Earnings Per Share** | **$1.26** | **$0.70** | **80.0%** | [Additional Information](index=3&type=section&id=Additional%20Information) This section includes important forward-looking statements, outlining potential risks and uncertainties that could impact DXP's future financial results and operational strategies [Forward-Looking Statements](index=3&type=section&id=Forward-Looking%20Statements) This report contains forward-looking statements protected by the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995, concerning expectations for future performance, cash flow, liquidity, and growth, but these are subject to significant risks and uncertainties that could cause actual results to differ materially - Certain information in this press release contains forward-looking statements protected by the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995[12](index=12&type=chunk) - Forward-looking statements involve the company's expectations regarding future profitability, cash flow, liquidity, and growth, as well as descriptions of anticipated changes in Form 10-Q filings, consolidated balance sheets, and operating results[12](index=12&type=chunk) - These forward-looking statements involve significant risks and uncertainties that could cause actual future results to differ materially from expectations, including the effectiveness of management strategies, economic and business conditions, regulatory changes, acquisition integration capabilities, material and labor availability, and cyberattacks[12](index=12&type=chunk)

Financial Data and Key Metrics Changes - The first quarter adjusted EBITDA was $52.5 million, with adjusted diluted earnings per share of $1.26, supported by a year-over-year sales growth of 15.5% and sequential sales growth of 1.2% [6][18] - Total sales for Q1 increased to $476.6 million, with average daily sales rising from $6.9 million in January to $8.1 million in March [11][19] - Gross margins improved to 31.5%, reflecting a year-over-year increase of 151 basis points [24] Business Line Data and Key Metrics Changes - Innovative Pumping Solutions (IPS) saw a sales growth of 38.5% year over year, while Service Centers grew by 13.4% and Supply Chain Services by 2.1% [11][19] - IPS backlog continued to grow, with energy-related backlog increasing by 5.5% over Q4 [22] - Service Centers achieved a new sales watermark of $327 million, with notable growth in regions like Alaska and Texas Gulf Coast [20][18] Market Data and Key Metrics Changes - The ISM and PMI manufacturing index indicated a slight contraction, moving from 50.9 in January to 49 in March, with expectations that price increases will offset this contraction [9] - Oil and gas, representing 23% of the business, showed consistent demand, with anticipated growth driven by large projects [10] Company Strategy and Development Direction - The company remains focused on organic and inorganic growth, with a commitment to customer-driven expertise and operational improvements [5][7] - DXP is actively pursuing acquisitions to diversify its market presence, having closed one acquisition in Q1 and planning more [8][32] - The company aims to maintain a balance between strategic investments and preserving liquidity amid market uncertainties [15][31] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism regarding future demand despite tariff uncertainties, noting that no significant demand effects have been observed yet [16][44] - The company is well-positioned to navigate market volatility and is focused on improving efficiencies while making strategic investments [15][17] Other Important Information - The company reported a working capital increase to $325.3 million, reflecting a rise in receivables [27] - Cash flow from operations was $3 million, impacted by growth in accounts receivable and tax payments [29] Q&A Session Summary Question: Can you share daily sales trends by month for Q1 and Q2? - Daily sales trends showed an increase from $6.8 million in January to $8.1 million in March, with April at $7.8 million [38][39] Question: Will there be any significant margin differences between Q1 and Q2? - There are no substantive factors expected to cause a significant margin difference between Q1 and Q2 [40][41] Question: Are there signs of slowing down due to tariffs and macro uncertainty? - Management noted no significant effect on demand yet, although there may be some stalling due to uncertainty around tariffs [42][44]

DXP Enterprises (DXPE) Q1 2025 Earnings Call May 08, 2025 11:30 AM ET Speaker0 Ladies and gentlemen, thank you for standing by. My name is Krista, and I will be your conference operator today. At this time, I would like to welcome everyone to the DXP Enterprises First Quarter twenty twenty five Earnings Release. All lines have been placed on mute to prevent any background noise. After the speakers' remarks, there will be a question and answer session. Thank you. I would now like to turn the conference over ...

FORWARD LOOKING STATEMENTS Presented by: David Little Chairman, President & CEO Kent Yee Senior Vice President & CFO NASDAQ: DXPE Results for Q1 Fiscal 2025 Earnings Announcement: May 8, 2025 (Quarter Ending March 31, 2025 ) This presentation contains forward-looking statements within the meaning of the U.S. federal securities laws that involve risks and uncertainties. Certain statements contained in this report are not purely historical, including statements regarding our expectations, beliefs, intentions ...

Core Insights - The article highlights Steven Cress's role as VP of Quantitative Strategy and Market Data at Seeking Alpha, emphasizing his contributions to the platform's quantitative stock rating system and analytical tools [1][2] - Cress is dedicated to removing emotional biases from investment decisions through a data-driven approach, utilizing sophisticated algorithms to simplify investment research [2][3] - With over 30 years of experience in equity research and quantitative strategies, Cress is well-equipped to address various investment topics [4] Company Overview - Seeking Alpha has integrated Cress's quantitative analysis and market data capabilities, enhancing its investment research offerings [3] - The platform features a systematic stock recommendation tool called Alpha Picks, aimed at helping long-term investors build superior portfolios [1][2] Professional Background - Prior to joining Seeking Alpha, Cress founded CressCap Investment Research, which was acquired in 2018, and also established the quant hedge fund Cress Capital Management [3] - Cress has extensive experience in proprietary trading and international business development, having worked at Morgan Stanley and Northern Trust [3][4]

Core Viewpoint - Healthy cash flow is essential for a company's existence, development, and success, providing the strength and flexibility needed for investment decisions and growth [1][2][3] Cash Flow Importance - Even profitable companies can fail if their cash flow is irregular, highlighting the importance of cash flow in assessing a company's resiliency [2][4] - Positive cash flow indicates an increase in liquid assets, enabling a company to meet obligations, reinvest, and return wealth to shareholders, while negative cash flow reduces liquidity and flexibility [4][5] Growth and Management Efficiency - A company must not only have positive cash flow but also increasing cash flow to indicate management's efficiency and reduced dependency on external financing [5][6] Screening Parameters for Investment - Stocks were screened for those with cash flow in the latest quarter at least equal to the 5-year average cash flow per share, indicating a positive trend [6] - Additional criteria included Zacks Rank 1, average broker rating of 1, current price greater than or equal to $5, and a VGM Score of B or better [7] Qualified Stocks - Griffon Corporation (GFF) operates through subsidiaries providing consumer and professional products, with a revised fiscal 2025 earnings estimate [8] - Nomad Foods (NOMD) focuses on frozen foods in Europe, with a 4.0% improvement in the earnings estimate for 2025 [9] - DXP Enterprises (DXPE) offers innovative pumping solutions, with a 22.5% upward revision in current-year earnings [10] - Limbach Holdings (LMB) provides building systems, with a 9.9% increase in the 2025 earnings estimate [10]

Economic Impact - U.S. stock markets are experiencing extreme volatility due to the "Liberation Day" tariffs imposed by the Trump administration, with a baseline tariff of 10% on all imports and rates as high as 145% for certain countries like China [1] - Economists express concerns about the tariffs' impact on U.S. economic growth and inflation, with fears of a near-term recession [2] - Ongoing negotiations between the U.S. and other countries, including China, have not yielded positive results [3] Company Analysis PG&E Corp. (PCG) - Engaged in the sale and delivery of electricity and natural gas in California, with a capital expenditure plan of $63 billion for infrastructure from 2024 to 2028 [8][9] - Expected revenue and earnings growth rates of 7.4% and 10.3% for the current year, with a Zacks Consensus Estimate for earnings improving by 0.7% in the last 60 days [10] - Average short-term price target indicates a potential increase of 17.5% from the last closing price of $17.39, with a maximum upside of 32.6% [11] Comfort Systems USA Inc. (FIX) - A national provider of HVAC services, with expected revenue and earnings growth rates of 7.4% and 22.4% for the current year [12][14] - The Zacks Consensus Estimate for earnings has improved by 6% in the last 60 days, with an average short-term price target suggesting a 42.7% increase from the last closing price of $376.21 [14] DXP Enterprises Inc. (DXPE) - A distributor providing innovative solutions to industrial customers, with expected revenue and earnings growth rates of 0.1% and 17.1% for the current year [15][16] - The Zacks Consensus Estimate for earnings has improved by 22.5% in the last 30 days, with an average short-term price target indicating a 17.4% increase from the last closing price of $85 [17] The Progressive Corp. (PGR) - Gaining from higher premiums and a strong product portfolio, with expected revenue and earnings growth rates of 16.5% and 11.7% for the current year [18][19] - The Zacks Consensus Estimate for earnings has improved by 0.8% over the last seven days, with an average short-term price target suggesting a 12.6% increase from the last closing price of $265.19 [20] GE Aerospace - Witnessing strength due to robust demand for commercial engines and rising defense budgets, with expected revenue and earnings growth rates of -6.8% and 17.8% for the current year [22][24] - Received orders for over 4,600 engines in the second half of 2024, with an average short-term price target indicating a 17.2% increase from the last closing price of $197.41 [25]

Core Viewpoint - Growth investors seek stocks with above-average financial growth, but identifying such stocks can be challenging due to inherent volatility and risks [1] Group 1: Company Overview - DXP Enterprises (DXPE) is recommended as a cutting-edge growth stock based on its favorable Growth Score and top Zacks Rank [2] - The company has a historical EPS growth rate of 51.1%, with projected EPS growth of 17.1% this year, significantly higher than the industry average of 6.8% [5] Group 2: Earnings Growth - Earnings growth is crucial for growth investors, with double-digit growth being highly preferable [4] - DXP Enterprises' projected EPS growth of 17.1% this year indicates strong prospects for stock price gains [5] Group 3: Cash Flow Growth - Year-over-year cash flow growth for DXP Enterprises is 6.5%, surpassing the industry average of 1.6% [6] - The company's annualized cash flow growth rate over the past 3-5 years is 12.3%, compared to the industry average of 8.5% [7] Group 4: Earnings Estimate Revisions - Positive trends in earnings estimate revisions correlate strongly with near-term stock price movements [8] - The current-year earnings estimates for DXP Enterprises have increased by 22.5% over the past month [9] Group 5: Investment Potential - DXP Enterprises has earned a Growth Score of B and carries a Zacks Rank 1 due to positive earnings estimate revisions, indicating it is a solid choice for growth investors [11]

Core Viewpoint - The article highlights DXP Enterprises (DXPE) as a promising growth stock, supported by its favorable Growth Score and Zacks Rank, indicating strong potential for outperformance in the market [2][11]. Earnings Growth - DXP Enterprises has a historical EPS growth rate of 51.1%, with projected EPS growth of 17.1% for the current year, significantly surpassing the industry average of 7.8% [5]. Cash Flow Growth - The company exhibits a year-over-year cash flow growth of 6.5%, which is higher than the industry average of 2.9%. Additionally, its annualized cash flow growth rate over the past 3-5 years stands at 12.3%, compared to the industry average of 8.2% [6][7]. Earnings Estimate Revisions - There has been a notable upward revision in current-year earnings estimates for DXP Enterprises, with the Zacks Consensus Estimate increasing by 22.5% over the past month [9]. Overall Positioning - DXP Enterprises holds a Growth Score of B and a Zacks Rank 1, positioning it favorably for growth investors seeking strong performance [11].

Small deep value individual investor, with a modest private investment portfolio, split approx. 50%-50% between shares and call options. I have a B.Sc. in aeronautical engineering and over 6 years of experience as an engineering consultant in the aerospace sector. The latter statement is not relevant in any way whatsoever to my investment style, but I thought to add it for self-indulgent purposes. I have a contrarian investment style, highly risky, and often dealing with illiquid options. How illiquid? Well ...