Update: DXP Enterprises Earnings - Q2 Revenue Up, Margins Slightly Down But Acquired Businesses Stabilized; Stock Up 10%
Martin Vlcek • Mon, Aug. 4
- Revenues grew 23.9% Y/Y in total, with 4.2% organic growth. EPS grew 11.1% Y/Y and margins were slightly down Y/Y. Operations of the acquired Natpro and B52 businesses stabilized.
- The thesis has worked exactly as expected, with the stock price rising, but at a much slower annual rate due to higher debt resulting in lower future acquisition growth potential.
- I reiterate my long thesis and set a target price of $100 per share for the next 24 months is, offering a 28% total upside.