DXP Enterprises, Inc. today announced net income of $3,727,000 for the first quarter ended March 31, 2007, with diluted earnings per share of $.65 compared to net income of $2,502,000 and diluted earnings per share of $.44 for the first quarter of 2006. Sales increased 33.8% to $83.6 million from $62.5 million for the first quarter of last year. Sales by the four businesses acquired in 2006 accounted for $10.2 million of the sales increase. Excluding sales by the four acquired businesses, sales for the first quarter of 2007 increased 17.5% from the first quarter of 2006.
Analysts were estimating the company would earn $0.61 per share on sales of $81 million. On the conference call, the company discussed their strategy to differentiate between customers who need higher-service immediate availability (at higher cost) and those who want a managed B2B service. New software, which was originally scheduled to be operating already, but which is now expected to go live during the current quarter, will help.
DXPE 1-yr chart: