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

XPEL (NASDAQ:XPEL) issued its quarterly earnings results on Wednesday. The company reported $0.62 earnings per share (EPS) for the quarter, beating the consensus estimate 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 19.39% and a net margin of 11.17%. The company’s quarterly revenue was up 9.9% compared to the same quarter last year. During the same period in the previous year, the company posted $0.47 earnings per share.

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

Shares of XPEL stock opened at $40.06 on Friday. The firm has a market cap of $1.10 billion, a P/E ratio of 19.17 and a beta of 1.20. The firm’s 50-day simple moving average is $45.44 and its 200-day simple moving average is $46.03. XPEL has a twelve month low of $34.88 and a twelve month high of $55.91. The company has a debt-to-equity ratio of 0.17, a quick ratio of 1.14 and a current ratio of 2.56.

Wall Street Analysts Forecast Growth

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

XPEL Company Profile

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