Stocks To Watch: XPEL Inc [NASDAQ: XPEL] was one of the biggest gainers in Monday’s session. In the day, the stock gained by 30.80% to close at $14.14. This followed better than expected Q3 results. Yesterday the company announced its results and revenues had increased to $35.6 million. This represents gains of 21.9% compared to a similar quarter last year. Gross revenues also increased and stood at 34.5%. That’s much higher than Q3 of last year when the company reported a gross margin of 30.3%. In terms of earnings, the company reported an EPS of $0.16, significantly higher than the $0.08 that it recorded in a similar quarter last year.
In terms of operating costs, the company recorded an increase but as a percentage of sales they were lower than in Q3 of 2018. General operational expenses rose to $6.6 million representing 18.5% of sales. In the same period last year the company had operating expenses of $5.9 million representing 20.1% of sales. The company attributed the increase in expenses to personnel occupancy, R&D and Information technology for supporting business growth.
According to the company CEO, Ryan Pape, the company is pleased to have delivered strong continuous growth in Q3. He also noted that it recorded growth in all the geographic regions that it operates. One of the key markets he took note of is China where the company recorded a growth of 16.5% in Q3. He also stated that he believes they will continue to record strong growth and close 2019 in profitability.
Looking at the charts, XPEL is in a breakout. Yesterday, the stock opened the day at $11.35 and oscillated between $11.35 and $14.19 before closing the day at $14.14. Volumes were quite high too and stood at 970.16k. From the chart, XPEL has broken key resistance at $13, a pointer to bulls gaining strength.
About XPEL Inc
XPEL Inc (XPEL) is a manufacturer, and distributor of aftermarket automotive products in the U.S., Canada, and Europe. It has its headquarters in San Antonio, Texas.