Earnings results often indicate what direction a company will take in the months ahead. With Q4 behind us, let’s have a look at DXP (NASDAQ:DXPE) and its peers.
Supply chain and inventory management are themes that grew in focus after COVID wreaked havoc on the global movement of raw materials and components. Maintenance and repair distributors that boast reliable selection and quickly deliver products to customers can benefit from this theme. While e-commerce hasn’t disrupted industrial distribution as much as consumer retail, it is still a real threat, forcing investment in omnichannel capabilities to serve customers everywhere. Additionally, maintenance and repair distributors are at the whim of economic cycles that impact the capital spending and construction projects that can juice demand.
The 8 maintenance and repair distributors stocks we track reported a mixed Q4. As a group, revenues beat analysts’ consensus estimates by 0.7%.
While some maintenance and repair distributors stocks have fared somewhat better than others, they have collectively declined. On average, share prices are down 4.8% since the latest earnings results.
DXP (NASDAQ:DXPE)
Founded during the emergence of Big Oil in Texas, DXP (NASDAQ:DXPE) provides pumps, valves, and other industrial components.
DXP reported revenues of $470.9 million, up 15.7% year on year. This print exceeded analysts’ expectations by 5.3%. Overall, it was a very strong quarter for the company with an impressive beat of analysts’ EPS estimates.
DXP scored the biggest analyst estimates beat of the whole group. The stock is up 4.8% since reporting and currently trades at $82.50.
Is now the time to buy DXP? Access our full analysis of the earnings results here, it’s free.
Best Q4: MSC Industrial (NYSE:MSM)
Founded in NYC’s Little Italy, MSC Industrial Direct (NYSE:MSM) provides industrial supplies and equipment, offering vast and reliable selection for customers such as contractors
MSC Industrial reported revenues of $928.5 million, down 2.7% year on year, outperforming analysts’ expectations by 2.7%. The business had a stunning quarter with a solid beat of analysts’ EBITDA estimates.
However, the results were likely priced into the stock as it’s traded sideways since reporting. Shares currently sit at $79.19.
Is now the time to buy MSC Industrial? Access our full analysis of the earnings results here, it’s free.
Weakest Q4: Transcat (NASDAQ:TRNS)
Serving the pharmaceutical, industrial manufacturing, energy, and chemical process industries, Transcat (NASDAQ:TRNS) provides measurement instruments and supplies.
Transcat reported revenues of $66.75 million, up 2.4% year on year, falling short of analysts’ expectations by 5%. It was a disappointing quarter as it posted a significant miss of analysts’ EBITDA and EPS estimates.
Transcat delivered the weakest performance against analyst estimates in the group. As expected, the stock is down 28.9% since the results and currently trades at $70.75.
Read our full analysis of Transcat’s results here.
Global Industrial (NYSE:GIC)
Formerly known as Systemax, Global Industrial (NYSE:GIC) distributes industrial and commercial products to businesses and institutions.
Global Industrial reported revenues of $302.3 million, down 5.6% year on year. This number came in 1.2% below analysts' expectations. Overall, it was a slower quarter as it also recorded a miss of analysts’ EPS estimates.
Global Industrial had the slowest revenue growth among its peers. The stock is down 1.6% since reporting and currently trades at $23.90.
Read our full, actionable report on Global Industrial here, it’s free.
Fastenal (NASDAQ:FAST)
Founded in 1967, Fastenal (NASDAQ:FAST) provides industrial and construction supplies, including fasteners, tools, safety products, and many other product categories to businesses globally.
Fastenal reported revenues of $1.82 billion, up 3.7% year on year. This result missed analysts’ expectations by 1%. Overall, it was a slower quarter as it also produced a significant miss of analysts’ adjusted operating income estimates.
The stock is up 3.5% since reporting and currently trades at $77.42.
Read our full, actionable report on Fastenal here, it’s free.
Want to invest in winners with rock-solid fundamentals? Check out our Top 5 Quality Compounder Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate.
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