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].

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Exiting 2024, DXP Enterprises (NASDAQ: DXPE ) delivered another quarter with double-digit growth across its topline, thanks to robust momentum in the Innovative Pumping Solutions segment followed by expansion in new stronger end markets likeAs a finance enthusiast with experience in research, I am deeply engaged in studying diverse businesses, especially in the technology, industrial, and conglomerate sectors. I really like companies that have strong foundations and see them doing well in the long run. I en ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K For the transition period from _________ to _________. Commission file number 0-21513 DXP Enterprises, Inc. (Exact name of registrant as specified in its charter) Texas 5301 Hollister, Houston, Texas 77040 76-0509661 (State of incorporation) (Address of principal executive of ices, including zip code) (I.R.S. Employer Identification Number) (713) 996-4700 (Registrant's telephone number, including area code) Securities register ...

Financial Performance - Fiscal 2024 sales reached $1.8 billion, representing a 7.4% increase from fiscal 2023[5] - Fourth quarter sales were $470.9 million, up from $407.0 million in the same quarter of 2023, marking a year-over-year growth of 15.6%[6] - Full year GAAP diluted EPS was $4.22, compared to $3.89 in fiscal 2023, reflecting an increase of 8.5%[6] - Adjusted EBITDA for fiscal 2024 was $191.3 million, a 9.8% increase from $174.3 million in 2023[6] - Adjusted net income for the twelve months ended December 31, 2024, was $75,396, up from $71,212 in 2023, representing a 5.5% increase[27] - The company reported a diluted earnings per share of $1.29 for the three months ended December 31, 2024, compared to $0.94 in 2023, a 37.2% increase[27] Cash Flow and Debt - Free cash flow for fiscal 2024 was $77.1 million, which is 42.3% of EBITDA, down from $94.0 million in fiscal 2023[6] - Free cash flow for the three months ended December 31, 2024, was $22,748, down from $37,287 in 2023, indicating a decrease of 39%[27] - The company ended fiscal 2024 with $148.4 million in cash and net debt of $500.6 million, resulting in a secured leverage ratio of 2.4:1.0[8] - Long-term debt rose to $621,684 as of December 31, 2024, from $520,697 in 2023, reflecting a 19.4% increase[18] Sales and Market Position - Innovative Pumping Solutions sales surged 47.7% to $323.0 million, while Supply Chain Services sales declined 1.5% to $256.4 million[8] - Organic sales for the three months ended December 31, 2024, were $436,127, compared to $404,232 in 2023, showing an 8% growth[25] - Total DXP sales for the three months ended December 31, 2024, reached $470,914, a 15.6% increase from $407,044 in the same period of 2023[20] Operational Efficiency - Operating income for the total segments increased to $64,948 for the three months ended December 31, 2024, compared to $51,142 in 2023, reflecting a 27% growth[20] - EBITDA for the three months ended December 31, 2024, was $48,984, up from $40,501 in 2023, representing a 21.5% increase[24] Assets and Liabilities - Total assets increased to $1,349,494 as of December 31, 2024, compared to $1,177,436 in 2023, marking a growth of 14.6%[18] - The total current liabilities increased to $243,984 as of December 31, 2024, from $224,165 in 2023, reflecting an 8.9% rise[18] Strategic Growth - DXP completed seven acquisitions during fiscal 2024, enhancing its market position[5] - The company expects continued growth driven by both organic and acquisition strategies, supported by a strong balance sheet[8]

Financial Data and Key Metrics Changes - DXP Enterprises reported a 7.4% increase in total sales for fiscal 2024, reaching $1.8 billion, with adjusted EBITDA of $191.3 million, reflecting a 9.8% year-over-year increase [9][30][37] - Gross profit margins improved by 77 basis points to 30.9%, marking a second consecutive fiscal year with adjusted EBITDA margins exceeding 10% [9][29][50] - Diluted earnings per share for fiscal 2024 increased to $4.22, up from $3.89 in the previous year, with adjusted diluted EPS in Q4 at $1.38 [51][63] Business Line Data and Key Metrics Changes - Innovative Pumping Solutions (IPS) experienced significant growth of 47.7% year-over-year, contributing $323 million to total sales [22][40] - Service Centers grew by 1.9% to $1.2 billion, while Supply Chain Services saw a slight decline of 1.5% [22][40] - IPS sales contribution increased to 18% of total sales in 2024, up from 13% in 2023 [30][46] Market Data and Key Metrics Changes - DXP's end-market diversification included oil and gas at 23%, water and wastewater at 10%, and food and beverage at 7% [11] - The DXP Water backlog grew by 108% year-over-year, with organic growth of 39.5% [42] - Regions showing year-over-year growth included North Central, South Rockies, and Southwest, with notable strength in Canadian rotating equipment and U.S. safety services [27][43] Company Strategy and Development Direction - The company aims to double its size over the next 3 to 5 years through strategic investments and acquisitions, having completed 7 acquisitions in fiscal 2024 [15][18] - DXP continues to focus on diversifying end markets, particularly in water and wastewater, while maintaining operational efficiencies [13][19] - The strategy combines the strengths of a large company with the agility of local businesses to enhance customer value and growth opportunities [15] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism for fiscal 2025, anticipating continued organic and acquisition-driven growth, with a strong pipeline of opportunities [18][21] - The company is well-positioned to navigate inflationary pressures, with a history of passing on cost increases to customers [34][80] - Management highlighted the importance of maintaining margins while driving long-term operational efficiencies [31][79] Other Important Information - DXP generated $77 million in free cash flow for fiscal 2024, reflecting a focus on consistent cash generation while investing in working capital [17][57] - The company successfully refinanced its Term Loan B, reducing borrowing costs and raising an additional $105 million for acquisitions [55][61] - Capital expenditures for fiscal 2024 were $25.1 million, up from $12.3 million in fiscal 2023, indicating a commitment to reinvestment [56] Q&A Session Summary Question: Can you share daily sales trends by month for Q4 and into Q1? - In Q4, sales per business day were $7.2 million in October, $7.5 million in November, and $8.1 million in December. For January and February 2025, sales per business day were $6.8 million and $7.8 million respectively [68][69] Question: How are margins trending quarter-over-quarter? - Margins increased significantly from Q3 to Q4, driven by a favorable mix, particularly from water and wastewater acquisitions, which typically have higher gross and EBITDA margins [70][72] Question: What are the company's goals regarding EBITDA margins? - The company aims to achieve 11% EBITDA margins, having previously set a goal of 10%, which has been met [74][79]

Company Performance - DXP Enterprises (DXPE) closed at $88.29, down 1.8% from the previous trading session, underperforming the S&P 500's loss of 0.5% [1] - Over the past month, DXP Enterprises' shares have decreased by 15.38%, significantly trailing the Industrial Products sector's loss of 6.92% and the S&P 500's loss of 0.47% [1] Earnings and Analyst Estimates - The upcoming earnings release of DXP Enterprises is highly anticipated by investors, with recent changes to analyst estimates indicating evolving near-term business trends [2] - Positive estimate revisions are interpreted as a favorable sign for the company's business outlook [2][3] Zacks Rank and Valuation - DXP Enterprises currently holds a Zacks Rank of 3 (Hold), with the Zacks Consensus EPS estimate remaining stagnant over the past month [4] - The company has a Forward P/E ratio of 20.86, which is a discount compared to the industry's average Forward P/E of 23.15 [5] - The Manufacturing - General Industrial industry, part of the Industrial Products sector, has a Zacks Industry Rank of 141, placing it in the bottom 44% of over 250 industries [5]

Company Performance - DXP Enterprises (DXPE) closed at $101.90, with a +0.25% change from the previous day, outperforming the S&P 500's daily loss of 0.27% [1] - Over the past month, shares of DXP Enterprises have appreciated by 5.7%, surpassing the Industrial Products sector's gain of 3.78% and the S&P 500's gain of 4.27% [1] Earnings and Analyst Estimates - The investment community is closely monitoring DXP Enterprises' forthcoming earnings report, with a focus on any recent changes to analyst estimates [2] - Upward revisions in estimates indicate analysts' positivity towards the company's business operations and profit generation capabilities [2] Valuation and Ranking - DXP Enterprises has a Zacks Rank of 3 (Hold), with the Zacks Consensus EPS estimate remaining stagnant over the past month [4] - The company is currently traded at a Forward P/E ratio of 23.58, which is a premium compared to the industry's average Forward P/E of 23.27 [4] Industry Context - The Manufacturing - General Industrial industry, part of the Industrial Products sector, has a Zacks Industry Rank of 160, placing it in the bottom 37% of over 250 industries [5] - Research indicates that the top 50% rated industries outperform the bottom half by a factor of 2 to 1 [5]