DNOW Earnings Prediction
The chart below shows how DNOW performed 10 days before and after its earnings report, based on data from the past quarters. Typically, DNOW sees a +0.19% change in stock price 10 days leading up to the earnings, and a +0.63% change 10 days following the report. On the earnings day itself, the stock moves by +0.44%. This data can give you a slight idea of what to expect for the next quarter's release.
DNOW Key Earning Data
DNOW Earnings Analysis
Positive
Earnings Per Share Beat: NOW Inc. reported an EPS of $0.25, exceeding expectations of $0.14, indicating strong financial performance.
Record Revenue Achievement: The company achieved a revenue of $2.4 billion for the full year 2024, marking a 2% increase year-over-year and the highest revenue since 2019.
Gross Margin Improvement: Fourth quarter gross margin improved to 23.3%, up 100 basis points sequentially, aided by a favorable product mix and vendor considerations.
Free Cash Flow Achievement: NOW Inc. generated $289 million in free cash flow for the full year 2024, representing a 165% free cash flow conversion, one of the best years since 2015.
Share Repurchase Programs: The company completed its $80 million share repurchase program, repurchasing approximately 7 million shares, and announced a new $160 million share repurchase program, demonstrating confidence in its cash generation capabilities.
Acquisition Impact on Revenue: The acquisition of Trojan is expected to enhance NOW Inc.'s water management solutions and contribute to revenue growth in the process solutions business.
Debt-Free Financial Strength: The company has maintained a debt-free status with a cash position of $256 million, providing a strong balance sheet for future investments and acquisitions.
Resilience Amid Market Decline: NOW Inc. expects to achieve growth in 2025 despite anticipated declines in market activity, showcasing resilience and strategic planning.
Cost Control Success: The company has successfully implemented cost control initiatives, leading to improved earnings and cash generation in its core legacy businesses.
Negative
Revenue Decline Challenges: Despite beating earnings expectations, NOW Inc. reported a sequential revenue decline of 6% in Q4 2024, indicating potential challenges in maintaining growth momentum.
Customer Spending Decline: The company anticipates a decline in upstream customer spending in 2025 due to efficiency gains in drilling and completions, which could negatively impact revenue.
Sales Decline Forecast: NOW Inc. expects a $40 million sales decline in fabrication for 2025 as a major customer plans to exhaust existing inventory and only place project-specific orders.
Revenue Reduction Forecast: The company also forecasts a $30 million reduction in revenues from 2024 business that was bid out at margins lower than the cost to service those revenues, indicating potential profitability issues.
International Revenue Decline: International revenue decreased by 17% year-over-year in 2024, reflecting project delays and a challenging market environment.
Canadian Revenue Decline: The Canadian revenue for 2024 was down 10% year-over-year, suggesting difficulties in that market segment.
Gross Margin Decline: The overall gross margins for 2024 were lower than in 2023, highlighting pricing pressures, particularly in steel products, which could affect profitability going forward.
DNOW FAQs
How does DNOW typically perform around its earnings report dates?
DNOW's stock performance around earnings reports can vary, but historical data shows specific patterns, such as a +0.19% change leading up to the report and a +0.63% change in the 10 days following the release.
Is DNOW Inc (DNOW) Q4 2024 Earnings Call Summary positive or negative?
How can historical earnings data help predict future stock performance?
DNOW Earning Call Sentiment
NOW Inc. (NYSE:DNOW) Q4 2024 Earnings Call Transcript
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