DXP Enterprises, Inc. (NASDAQ:DXPE) defied analyst predictions to release its third-quarter results, which were ahead of market expectations. The company beat forecasts, with revenue of US$473m, some 6.8% above estimates, and statutory earnings per share (EPS) coming in at US$1.27, 34% ahead of expectations. This is an important time for investors, as they can track a company's performance in its report, look at what expert is forecasting for next year, and see if there has been any change to expectations for the business. We thought readers would find it interesting to see the analyst latest (statutory) post-earnings forecasts for next year.

Check out our latest analysis for DXP Enterprises

Taking into account the latest results, the most recent consensus for DXP Enterprises from sole analyst is for revenues of US$1.79b in 2025. If met, it would imply a credible 2.8% increase on its revenue over the past 12 months. Statutory earnings per share are forecast to decrease 6.9% to US$3.86 in the same period. In the lead-up to this report, the analyst had been modelling revenues of US$1.79b and earnings per share (EPS) of US$3.86 in 2025. So it's pretty clear that, although the analyst has updated their estimates, there's been no major change in expectations for the business following the latest results.

The consensus price target rose 36% to US$75.00despite there being no meaningful change to earnings estimates. It could be that the analystare reflecting the predictability of DXP Enterprises' earnings by assigning a price premium.

Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. We would highlight that DXP Enterprises' revenue growth is expected to slow, with the forecast 2.2% annualised growth rate until the end of 2025 being well below the historical 10% p.a. growth over the last five years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 5.4% per year. Factoring in the forecast slowdown in growth, it seems obvious that DXP Enterprises is also expected to grow slower than other industry participants.

The Bottom Line

The most obvious conclusion is that there's been no major change in the business' prospects in recent times, with the analyst holding their earnings forecasts steady, in line with previous estimates. Fortunately, the analyst also reconfirmed their revenue estimates, suggesting that it's tracking in line with expectations. Although our data does suggest that DXP Enterprises' revenue is expected to perform worse than the wider industry. There was also a nice increase in the price target, with the analyst clearly feeling that the intrinsic value of the business is improving.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. At least one analyst has provided forecasts out to 2026, which can be seen for free on our platform here.

However, before you get too enthused, we've discovered 2 warning signs for DXP Enterprises (1 makes us a bit uncomfortable!) that you should be aware of.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.