XPEL (NASDAQ:XPEL) Issues Earnings Results, Beats Expectations By $0.02 EPS

XPEL (NASDAQ:XPEL) announced its earnings results on Wednesday. The company reported $0.62 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $0.60 by $0.02, FiscalAI reports. XPEL had a return on equity of 18.98% and a net margin of 10.77%. The business had revenue of $137.81 million for the quarter, compared to analyst estimates of $138.75 million. During the same period in the previous year, the company earned $0.47 earnings per share. The company’s revenue for the quarter was up 9.9% compared to the same quarter last year.

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 Stock Performance

Shares of XPEL stock opened at $42.13 on Thursday. XPEL has a 12-month low of $31.88 and a 12-month high of $55.91. 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 firm has a market capitalization of $1.16 billion, a price-to-earnings ratio of 21.25 and a beta of 1.20. The business has a 50 day simple moving average of $45.65 and a 200 day simple moving average of $46.10.

Key XPEL News

Here are the key news stories impacting XPEL this week:

• Positive Sentiment: Adjusted? XPEL earned $0.62 per share, topping analysts’ $0.60 consensus and rising from $0.47 a year earlier. Net income also increased. XPEL Q3 earnings results
• Positive Sentiment: Revenue grew 9.9% year over year to $137.8 million, while gross margin expanded to 44.6% from 41.8%. Margin improvement suggests better profitability even as growth remained moderate. XPEL third-quarter results
• Negative Sentiment: Revenue was slightly below the $138.75 million consensus estimate cited in the earnings data, tempering the earnings beat and potentially weighing on investor reaction. XPEL Q3 earnings results

Analyst Upgrades and Downgrades

XPEL has been the subject of several research analyst reports. B. Riley Financial boosted their target price on shares of XPEL from $55.00 to $65.00 and gave the stock a “buy” rating in a research report on Thursday, August 6th. Weiss Ratings raised XPEL from a “hold (c)” rating to a “hold (c+)” rating in a report on Thursday, October 8th. Finally, Freedom Capital upgraded XPEL from a “hold” rating to a “strong-buy” rating in a research note on Friday, August 7th. One investment analyst has rated the stock with a Strong Buy rating, one has issued a Buy rating and two have assigned a Hold rating to the company. According to MarketBeat, XPEL presently has an average rating of “Moderate Buy” and an average price target of $65.00.

About XPEL

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