XPEL (NASDAQ:XPEL) Posts Quarterly Earnings Results, Beats Estimates By $0.04 EPS

Key Points

• Q1 EPS $0.37 topped estimates by $0.04 and revenue came in at $117.4M versus $113.1M expected, a 13.1% year‑over‑year increase.
• Management guided Q2 revenue to the $135–$137 million range and reported a 43.7% gross margin with expected sequential improvement, while warning that pricing and petrochemical/supply pressures could limit gains; OEM sales hit a record near 7% of revenue and are expected to scale.
• Cash conversion was pressured as DSO and inventory rose; the company spent about $9.7M in CapEx and executed a ~$3M buyback, and the stock fell roughly 7.6% to $45.63 after the release.

XPEL (NASDAQ:XPEL - Get Free Report) issued its earnings results on Wednesday. The company reported $0.37 earnings per share for the quarter, topping the consensus estimate of $0.33 by $0.04, FiscalAI reports. The business had revenue of $117.35 million for the quarter, compared to analysts' expectations of $113.10 million. XPEL had a return on equity of 19.51% and a net margin of 10.76%.The business's revenue for the quarter was up 13.1% compared to the same quarter last year. During the same period in the previous year, the firm posted $0.31 EPS.

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

• Q1 revenue grew 13.1% to $117.4 million, led by a strong March and outperformance in the U.S. and APAC with U.S. revenue up about 10% and broad strength across channels.
• Management guides Q2 revenue to the $135–$137 million range, noting that that outlook already incorporates some downside from the Middle East but could face additional downside if conditions worsen.
• Gross margin was 43.7% as the company works through higher-cost China inventory and margin initiatives; management expects sequential improvement but warns pricing and petrochemical/supply pressures could limit gains.
• OEM business reached a record level (just under 7% of revenue) and management expects continued expansion and operating leverage as OEM programs scale across multiple manufacturers and regions.
• Cash conversion was pressured in Q1—DSO rose (partly from OEM terms and China transition), inventory increased for seasonality and acquisition, and the company spent about $9.7 million in CapEx while executing a ~$3 million share buyback.

XPEL Stock Down 7.6%

NASDAQ:XPEL traded down $3.74 during trading hours on Wednesday, reaching $45.63. 396,753 shares of the stock were exchanged, compared to its average volume of 243,699. The business has a 50-day moving average of $43.60 and a two-hundred day moving average of $46.01. XPEL has a twelve month low of $31.26 and a twelve month high of $55.91. The company has a market capitalization of $1.26 billion, a price-to-earnings ratio of 24.66 and a beta of 1.13.

Institutional Inflows and Outflows

Large investors have recently added to or reduced their stakes in the company. Steward Partners Investment Advisory LLC lifted its stake in XPEL by 462.9% during the fourth quarter. Steward Partners Investment Advisory LLC now owns 985 shares of the company's stock worth $49,000 after purchasing an additional 810 shares in the last quarter. Lazard Asset Management LLC acquired a new position in XPEL during the second quarter worth $55,000. Russell Investments Group Ltd. acquired a new position in XPEL during the third quarter worth $66,000. Tower Research Capital LLC TRC lifted its stake in XPEL by 234.0% during the second quarter. Tower Research Capital LLC TRC now owns 2,886 shares of the company's stock worth $104,000 after purchasing an additional 2,022 shares in the last quarter. Finally, Osaic Holdings Inc. lifted its stake in XPEL by 319.7% during the second quarter. Osaic Holdings Inc. now owns 2,984 shares of the company's stock worth $107,000 after purchasing an additional 2,273 shares in the last quarter. 75.08% of the stock is currently owned by institutional investors and hedge funds.

Analysts Set New Price Targets

Several brokerages have recently weighed in on XPEL. Zacks Research upgraded XPEL from a "strong sell" rating to a "hold" rating in a report on Monday, April 27th. Weiss Ratings restated a "hold (c)" rating on shares of XPEL in a report on Friday, March 27th. Two equities research analysts have rated the stock with a Hold rating, Based on data from MarketBeat.com, the company presently has an average rating of "Hold".

XPEL Company Profile

XPEL, Inc is a leading manufacturer and distributor of advanced protective films and coatings for automotive, marine, aviation, and architectural applications. The company's core products include paint protection film (PPF), window tinting film, and ceramic coatings designed to shield surfaces from scratches, environmental contaminants, and UV damage. XPEL's flagship PPF, known for its self-healing properties, is engineered to maintain a vehicle's factory finish by resisting swirl marks, stone chips, and acid rain.

Beyond automotive protection, XPEL has expanded its offerings to include protective films for electronics and architectural surfaces, providing solutions that enhance durability and prolong the life of high-value assets.

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