Earnings Beat: DXP Enterprises, Inc. Just Beat Analyst Forecasts, And Analysts Have Been Updating Their Models

The investors in DXP Enterprises, Inc.'s (NASDAQ:DXPE) will be rubbing their hands together with glee today, after the share price leapt 22% to US$48.76 in the week following its yearly results. Revenues were US$1.7b, approximately in line with whatthe analyst expected, although statutory earnings per share (EPS) crushed expectations, coming in at US$3.89, an impressive 38% ahead of estimates. This is an important time for investors, as they can track a company's performance in its report, look at what expert is forecasting for next year, and see if there has been any change to expectations for the business. With this in mind, we've gathered the latest statutory forecasts to see what the analyst is expecting for next year.

View our latest analysis for DXP Enterprises

Taking into account the latest results, the most recent consensus for DXP Enterprises from sole analyst is for revenues of US$1.81b in 2024. If met, it would imply a satisfactory 7.6% increase on its revenue over the past 12 months. Statutory earnings per share are forecast to descend 16% to US$3.57 in the same period. Yet prior to the latest earnings, the analyst had been anticipated revenues of US$1.73b and earnings per share (EPS) of US$3.16 in 2024. So it seems there's been a definite increase in optimism about DXP Enterprises' future following the latest results, with a substantial gain in the earnings per share forecasts in particular.

It will come as no surprise to learn that the analyst has increased their price target for DXP Enterprises 18% to US$65.00on the back of these upgrades.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the DXP Enterprises' past performance and to peers in the same industry. The period to the end of 2024 brings more of the same, according to the analyst, with revenue forecast to display 7.6% growth on an annualised basis. That is in line with its 6.8% annual growth over the past five years. Compare this with the broader industry, which analyst estimates (in aggregate) suggest will see revenues grow 5.4% annually. So although DXP Enterprises is expected to maintain its revenue growth rate, it's definitely expected to grow faster than the wider industry.

The Bottom Line

The biggest takeaway for us is the consensus earnings per share upgrade, which suggests a clear improvement in sentiment around DXP Enterprises' earnings potential next year. Happily, they also upgraded their revenue estimates, and are forecasting them to grow faster than the wider industry. There was also a nice increase in the price target, with the analyst clearly feeling that the intrinsic value of the business is improving.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have analyst estimates for DXP Enterprises going out as far as 2025, and you can see them free on our platform here.

You should always think about risks though. Case in point, we've spotted 3 warning signs for DXP Enterprises you should be aware of, and 2 of them don't sit too well with us.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.