DNOW (DNOW) Reports Earnings Tomorrow: What To Expect
Energy and industrial distributor DNOW (NYSE:DNOW) will be announcing earnings results this Friday morning. Here’s what to look for.
DNOW met analysts’ revenue expectations last quarter, reporting revenues of $634 million, up 4.6% year on year. It was a strong quarter for the company, with a beat of analysts’ EPS estimates and a solid beat of analysts’ EBITDA estimates.
This quarter, analysts are expecting DNOW’s revenue to grow 72.6% year on year to $985.6 million, improving from the 2.9% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.15 per share.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. DNOW has missed Wall Street’s revenue estimates four times over the last two years.
Looking at DNOW’s peers in the industrial distributors segment, some have already reported their Q4 results, giving us a hint as to what we can expect. Watsco’s revenues decreased 10% year on year, missing analysts’ expectations by 1.9%, and Richardson Electronics reported revenues up 5.7%, topping estimates by 4.8%. Watsco’s stock price was unchanged after the resultswhile Richardson Electronics was down 11.7%.
There has been positive sentiment among investors in the industrial distributors segment, with share prices up 7.8% on average over the last month. DNOW is up 15.7% during the same time and is heading into earnings with an average analyst price target of $17 (compared to the current share price of $16.33).
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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