Quarterly earnings results are a good time to check in on a company’s progress, especially compared to its peers in the same sector. Today we are looking at DXP (NASDAQ:DXPE) and the best and worst performers in the maintenance and repair distributors industry.
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 Q3. As a group, revenues beat analysts’ consensus estimates by 0.6%.
In light of this news, share prices of the companies have held steady as they are up 4.7% on average since the latest earnings results.
Best Q3: 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 $472.9 million, up 12.8% year on year. This print exceeded analysts’ expectations by 6.8%. Overall, it was an incredible quarter for the company with a solid beat of analysts’ EPS estimates and an impressive beat of analysts’ EBITDA estimates.
David R. Little, Chairman and Chief Executive Officer commented, "The Company posted excellent third quarter financial results in a lessening inflationary and varied spending by end market, delivering solid sales, adjusted EBITDA, earnings per share and free cash flow. "
DXP scored the biggest analyst estimates beat and fastest revenue growth of the whole group. Unsurprisingly, the stock is up 92.7% since reporting and currently trades at $98.10.
Is now the time to buy DXP? Access our full analysis of the earnings results here, it’s free.
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 2.6%. The business had a stunning quarter with a solid beat of analysts’ EBITDA estimates.
The market seems content with the results as the stock is up 2.7% since reporting. It currently trades at $82.04.
Is now the time to buy MSC Industrial? Access our full analysis of the earnings results here, it’s free.
Weakest Q3: 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 $342.4 million, down 3.4% year on year, falling short of analysts’ expectations by 3.1%. It was a disappointing quarter as it posted a significant miss of analysts’ EBITDA and EPS estimates.
Global Industrial delivered the slowest revenue growth in the group. As expected, the stock is down 25.8% since the results and currently trades at $24.55.
Read our full analysis of Global Industrial’s results here.
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 $1.91 billion, up 3.5% year on year. This result met analysts’ expectations. More broadly, it was a mixed quarter as it also recorded a narrow beat of analysts’ EPS estimates but a slight miss of analysts’ EBITDA estimates.
The stock is up 5.7% since reporting and currently trades at $74.
Read our full, actionable report on Fastenal here, it’s free.
W.W. Grainger (NYSE:GWW)
Founded as a supplier of motors, W.W. Grainger (NYSE:GWW) provides maintenance, repair, and operating (MRO) supplies and services to businesses and institutions.
W.W. Grainger reported revenues of $4.39 billion, up 4.3% year on year. This print was in line with analysts’ expectations. Taking a step back, it was a mixed quarter as it also logged full-year EPS guidance slightly topping analysts’ expectations but a slight miss of analysts’ organic revenue estimates.
The stock is down 1.9% since reporting and currently trades at $1,080.
Read our full, actionable report on W.W. Grainger here, it’s free.
Market Update
Thanks to the Fed's series of rate hikes in 2022 and 2023, inflation has cooled significantly from its post-pandemic highs, drawing closer to the 2% goal. This disinflation has occurred without severely impacting economic growth, suggesting the success of a soft landing. The stock market has thrived in 2024, spurred by recent rate cuts (0.5% in September and 0.25% each in November and December), and a notable surge followed Donald Trump's presidential election win in November, propelling indices to historic highs. Nonetheless, the outlook for 2025 remains clouded by the pace and magnitude of future rate cuts as well as potential changes in trade policy and corporate taxes once the Trump administration takes over. The path forward is marked by uncertainty.
Want to invest in winners with rock-solid fundamentals? Check out our Strong Momentum Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate.
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