DXP Enterprises (NASDAQ:DXPE) saw its stock price plummet by 8.81% in pre-market trading on Thursday following the release of its third-quarter 2025 financial results. Despite reporting increased sales, the company's earnings fell short of analyst expectations, leading to a significant sell-off.
The industrial products distributor announced quarterly earnings of $1.34 per share, missing the analyst consensus estimate of $1.44 by 6.94%. This represents a 6.29% decrease compared to earnings of $1.43 per share in the same period last year. However, the company reported quarterly sales of $513.724 million, beating the analyst consensus estimate of $495.200 million by 3.74% and marking an 8.62% increase from $472.935 million in the previous year.
While DXP Enterprises demonstrated solid top-line growth, with sales increasing across all segments, investors appeared to focus on the earnings miss. The company's net income for the quarter was $21.631 million, only slightly up from $21.1 million a year earlier. This discrepancy between revenue growth and profit performance suggests potential challenges in managing costs or maintaining margins, which may have contributed to the negative market reaction.
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