XPEL (NASDAQ:XPEL) Issues Earnings Results
by Amy Steele · The Cerbat GemXPEL (NASDAQ:XPEL – Get Free Report) released its quarterly earnings results on Wednesday. The company reported $0.37 EPS for the quarter, topping analysts’ consensus estimates of $0.33 by $0.04, FiscalAI reports. XPEL had a return on equity of 19.51% and a net margin of 10.76%.The company had revenue of $117.35 million for the quarter, compared to analysts’ expectations of $113.10 million. During the same period in the prior year, the firm earned $0.31 earnings per share. The firm’s revenue was up 13.1% compared to the same quarter last year.
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 Performance
Shares of XPEL stock traded down $3.74 during trading hours on Wednesday, reaching $45.63. 396,753 shares of the company were exchanged, compared to its average volume of 243,699. XPEL has a 1 year low of $31.26 and a 1 year high of $55.91. The stock’s fifty day moving average is $43.60 and its 200 day moving average is $46.01. The firm has a market cap of $1.26 billion, a PE ratio of 24.66 and a beta of 1.13.
Hedge Funds Weigh In On XPEL
Several large investors have recently bought and sold shares of XPEL. Steward Partners Investment Advisory LLC increased its holdings in XPEL by 462.9% in the fourth quarter. Steward Partners Investment Advisory LLC now owns 985 shares of the company’s stock valued at $49,000 after buying an additional 810 shares during the last quarter. Lazard Asset Management LLC purchased a new position in XPEL in the second quarter valued at $55,000. Russell Investments Group Ltd. purchased a new position in XPEL in the third quarter valued at $66,000. Tower Research Capital LLC TRC increased its holdings in XPEL by 234.0% in the second quarter. Tower Research Capital LLC TRC now owns 2,886 shares of the company’s stock valued at $104,000 after buying an additional 2,022 shares during the last quarter. Finally, Osaic Holdings Inc. increased its holdings in XPEL by 319.7% in the second quarter. Osaic Holdings Inc. now owns 2,984 shares of the company’s stock valued at $107,000 after buying an additional 2,273 shares during the last quarter. Hedge funds and other institutional investors own 75.08% of the company’s stock.
Analysts Set New Price Targets
A number of analysts have recently weighed in on the company. Weiss Ratings reaffirmed a “hold (c)” rating on shares of XPEL in a research report on Friday, March 27th. Zacks Research raised XPEL from a “strong sell” rating to a “hold” rating in a research report on Monday, April 27th. Two investment analysts have rated the stock with a Hold rating, Based on data from MarketBeat, XPEL has a consensus rating of “Hold”.
Read Our Latest Analysis on XPEL
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.