Xpel Q1 Earnings Exceed Estimates Amid New Car Inventory Constraints

Xpel Inc XPEL reported first-quarter FY22 sales growth of 38.6% year-on-year to $71.86 million, beating the consensus of $68.86 million.
Product revenue rose 29.3% Y/Y, and Services revenue increased 98.5%.
The gross margin for the quarter expanded 330 basis points to 38.6%.
The operating margin was 14%, and operating income for the quarter rose 17.4% to $10 million.
EBITDA grew 29.6% to $11.9 million, with a margin of 16.5%, versus 17.7% last year.
EPS of $0.28 beat the consensus of $0.24.
The company held $10.6 million in cash and equivalents as of March 31, 2022.
Ryan Pape, President and Chief Executive Officer of XPEL, commented, "We delivered a strong first quarter to begin 2022, despite on-going challenges with new car inventory in the US and impacts from COVID-related lockdowns in China."
"Despite this unusual environment, we believe we are well-positioned to deliver solid results in coming quarters," Pape added.
Price Action: XPEL shares traded higher by 1.82% at $42.97 on the last check Tuesday.

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