Xpel Q1 Earnings Exceed Estimates Amid New Car Inventory Constraints

• Xpel Inc (NASDAQ: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.