XPEL (NASDAQ:XPEL) Shares Gap Up After Better-Than-Expected Earnings

Key Points

• XPEL, Inc. shares gapped up from a previous closing price of $32.75 to open at $36.98 following a stronger-than-expected earnings report, which showed an EPS of $0.59, exceeding the consensus estimate of $0.52.
• The company announced a $50 million stock buyback program, allowing it to repurchase up to 5.4% of its outstanding shares, suggesting management believes the stock is undervalued.
• Wall Street Zen upgraded XPEL from a "hold" to a "buy" rating, indicating increased confidence in the company’s future performance.

XPEL, Inc. (NASDAQ:XPEL - Get Free Report) shares gapped up before the market opened on Wednesday following a better than expected earnings announcement. The stock had previously closed at $32.75, but opened at $36.98. XPEL shares last traded at $34.44, with a volume of 57,753 shares changing hands.

The company reported $0.59 earnings per share for the quarter, beating analysts' consensus estimates of $0.52 by $0.07. The business had revenue of $124.71 million for the quarter, compared to the consensus estimate of $118.37 million. XPEL had a net margin of 10.84% and a return on equity of 21.17%. XPEL's quarterly revenue was up 13.5% on a year-over-year basis. During the same period last year, the firm posted $0.54 earnings per share.

XPEL announced that its Board of Directors has authorized a share repurchase plan on Tuesday, May 6th that authorizes the company to repurchase $50.00 million in outstanding shares. This repurchase authorization authorizes the company to repurchase up to 5.4% of its shares through open market purchases. Shares repurchase plans are usually a sign that the company's board of directors believes its stock is undervalued.

Analysts Set New Price Targets

Separately, Wall Street Zen downgraded shares of XPEL from a "buy" rating to a "hold" rating in a research note on Saturday.

Institutional Inflows and Outflows

Large investors have recently made changes to their positions in the business. Allspring Global Investments Holdings LLC raised its stake in shares of XPEL by 54.0% during the first quarter. Allspring Global Investments Holdings LLC now owns 13,984 shares of the company's stock worth $407,000 after acquiring an additional 4,904 shares in the last quarter. Deutsche Bank AG increased its stake in shares of XPEL by 47.9% in the fourth quarter. Deutsche Bank AG now owns 23,017 shares of the company's stock worth $919,000 after buying an additional 7,459 shares during the period. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC increased its stake in shares of XPEL by 18.2% in the fourth quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC now owns 55,115 shares of the company's stock worth $2,201,000 after buying an additional 8,484 shares during the period. Bridges Investment Management Inc. increased its stake in shares of XPEL by 111.3% in the first quarter. Bridges Investment Management Inc. now owns 52,823 shares of the company's stock worth $1,552,000 after buying an additional 27,826 shares during the period. Finally, BNP Paribas Financial Markets purchased a new position in shares of XPEL in the fourth quarter worth $514,000. 75.08% of the stock is owned by hedge funds and other institutional investors.

XPEL Price Performance

The firm's 50 day moving average is $35.87 and its 200 day moving average is $34.63. The company has a market capitalization of $929.16 million, a PE ratio of 19.08 and a beta of 1.83.

XPEL Company Profile

XPEL, Inc sells, distributes, and installs protective films and coatings worldwide. The company offers automotive surface and paint protection film, headlight protection, and automotive and architectural window films, as well as proprietary DAP software. It also provides pre-cut film products, merchandise and apparel, ceramic coatings, and tools and accessories.