Benzinga | May 6, 2021 10:10AM EDT

DXP Enterprises's Earnings Outlook

On Friday, May 07, DXP Enterprises (NASDAQ:DXPE) will report its last quarter's earnings. Here is Benzinga's preview of the company's release.

What Are Earnings, Net Income, And Earnings Per Share?

Earnings and EPS are useful metrics of profitability. Total earnings also known as net income is equal to total revenue minus total expenses. Dividing net income by the total number of shares outstanding yields EPS.

Earnings And Revenue

DXP Enterprises earnings will be near $0.15 per share on sales of $245.00 million, according to analysts. In the same quarter last year, DXP Enterprises posted EPS of $0.31 on sales of $300.98 million.

Why Analyst Estimates And Earnings Surprises Are Important

Analysts who cover this company will publish forward-looking estimates of its revenue and EPS each quarter. Averaging together every EPS and revenue prediction that each analyst makes about a company in a quarter yields the "consensus estimates." A company posting earnings or revenue above or below the consensus estimate is known as an "earnings surprise" and may move the stock by a considerable margin.

The analyst consensus estimate would represent a 51.61% decrease in the company's earnings. Revenue would be down 18.6% from the same quarter last year. Here is how the company's reported EPS has stacked up against analyst estimates in the past: Quarter Q4 2021 Q3 2020 Q2 2020 Q1 2020EPS Estimate -0.18 -0.23 0.17 0.20EPS Actual 0.19 0.16 0.12 0.31Revenue Estimate 230.00 M 225.00 M 271.69 M 282.02 MRevenue Actual 232.69 M 220.19 M 251.40 M 300.98 M

Stock Performance

For a full 12 months, the return has risen by 103.4%. Given that these returns are generally positive, long-term shareholders are probably relaxed going into this earnings release. Long-term shareholders are already enjoying 12-month gains prior to the announcement.

Do not be surprised to see the stock move on comments made during its conference call. DXP Enterprises is scheduled to hold the call at 11:30:00 ET and can be accessed here.