XPEL (NASDAQ:XPEL) Issues Earnings Results

Key Points

• XPEL reported quarterly EPS of $0.62, beating the $0.60 consensus, while revenue of $137.81 million fell short of estimates. Revenue grew 9.9% year over year, and gross margin expanded 280 basis points to 44.6%.
• Management expects a softer fourth quarter, guiding to revenue of $125 million–$127 million amid dealership disruption, slower U.S. aftermarket trends, and weakness in China.
• The company cited a record OEM pipeline, including a substantial India contract expected to contribute in 2027, and said sales through its online commerce and referral platform are up about 20% year over year.

XPEL (NASDAQ:XPEL - Get Free Report) issued its quarterly earnings data on Wednesday. The company reported $0.62 EPS for the quarter, beating analysts' consensus estimates of $0.60 by $0.02, FiscalAI reports. The firm had revenue of $137.81 million for the quarter, compared to analyst estimates of $138.75 million. XPEL had a return on equity of 18.98% and a net margin of 10.77%. The company's revenue for the quarter was up 9.9% on a year-over-year basis. During the same period in the prior year, the firm posted $0.47 EPS.

Here are the key takeaways from XPEL's conference call:

• Revenue and earnings grew, with further margin expansion. Q3 revenue rose 9.9% to $137.8 million, while adjusted EPS increased to $0.62 from $0.47 a year earlier; gross margin expanded 280 basis points year over year to 44.6%.
• Management expects a softer Q4. It guided to revenue of $125 million–$127 million, citing continued dealership-channel disruption, slower U.S. aftermarket trends, a weaker Chinese auto market, and no assumed recovery in the Middle East.
• Executives see substantial OEM growth opportunities. The company described its OEM pipeline as the largest in its history, highlighted a substantial India contract expected to contribute in 2027, and said its online commerce and referral platform’s sales volume is up about 20% year over year.
• Manufacturing investments are progressing, but add near-term costs. Texas construction remains on schedule for production to begin around mid-2027, while startup costs are expected to weigh on Q4; management maintained its goal of mid-20s operating margins exiting 2028.

XPEL Price Performance

XPEL stock traded down $0.41 during mid-day trading on Wednesday, reaching $42.08. 451,829 shares of the company were exchanged, compared to its average volume of 238,617. The firm has a market cap of $1.16 billion, a PE ratio of 21.36 and a beta of 1.20. The company has a debt-to-equity ratio of 0.14, a current ratio of 2.61 and a quick ratio of 1.14. The company has a fifty day simple moving average of $45.81 and a 200-day simple moving average of $46.17. XPEL has a 12 month low of $31.88 and a 12 month high of $55.91.

Analyst Ratings Changes

Several equities analysts recently commented on XPEL shares. Weiss Ratings upgraded shares of XPEL from a "hold (c)" rating to a "hold (c+)" rating in a research note on Thursday, October 8th. Freedom Capital upgraded shares of XPEL from a "hold" rating to a "strong-buy" rating in a research note on Friday, August 7th. Finally, B. Riley Financial boosted their price objective on shares of XPEL from $55.00 to $65.00 and gave the company a "buy" rating in a report on Thursday, August 6th. One analyst has rated the stock with a Strong Buy rating, one has given a Buy rating and two have assigned a Hold rating to the company. According to data from MarketBeat, the stock has an average rating of "Moderate Buy" and a consensus price target of $65.00.

XPEL Company Profile

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