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 +0.08% change in stock price 10 days leading up to the earnings, and a +1.22% change 10 days following the report. On the earnings day itself, the stock moves by +0.58%. This data can give you a slight idea of what to expect for the next quarter's release.
DNOW Key Earning Data
2024/Q4
Year Over Year
Quarter Over Quarter
Total Revenue
606.00M
3.06%
-4.27%
Gross Margin
22.28%
-2.24%
2.20%
Operating Margin
6.11%
-2.86%
17.27%
Net Margin
2.15%
-63.87%
-45.57%
EPS
0.12
-61.29%
-42.86%
No Data Available
DNOW Earnings Analysis
DNOW Inc. Corporation (DNOW.N) Earnings Conference Call
Positive
Free Cash Flow Performance: 1. Strong Free Cash Flow: DNOW generated $72 million in free cash flow for Q3 2024, totaling $273 million over the trailing four quarters, exceeding the initial forecast of $150 million for the year.
Q3 Revenue Increase: 2. Revenue Growth: Total revenue for Q3 2024 was $606 million, reflecting a 3% increase year-over-year, demonstrating resilience despite market challenges.
Working Capital Improvement: 3. Improved Working Capital Efficiency: Working capital, excluding cash, as a percentage of annualized Q3 revenue improved to 15.7%, indicating enhanced operational efficiency and inventory management.
Digital Revenue Surpasses 50%: 4. Digital Revenue Milestone: Digital revenue as a percentage of total SAP revenue surpassed 50% for the first time, reaching 52%, showcasing the company's successful digital transformation efforts.
Strong Cash Reserves: 5. Robust Cash Position: DNOW ended Q3 2024 with a cash position of $261 million and no debt, providing a strong foundation for future growth and strategic investments.
Negative
Q3 2024 Revenue Decline: Third quarter 2024 revenue was $606 million, a sequential decrease of $27 million or 4% within our guided range.
Revenue Decline Analysis: In the U.S., revenue was $482 million, down $30 million or 6% sequentially due to the declining rig count, completions and project activity.
International Revenue Decline: International revenue for the third quarter of 2024 was $59 million, down $6 million or 9% sequentially, primarily due to location closures and lower project activity in the Middle East and U.K.
International Segment Operating Loss: The International segment recorded a $5 million operating loss in the third quarter of 2024, driven by $8 million of charges related to the restructuring.
Revenue Decline in Canada: In Canada, for the third quarter 2024, revenue totaled $65 million, down $3 million or 4% year-over-year.
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DNOW Earning Call Sentiment
DNOW Inc (DNOW) Q3 2024 Earnings Call Transcript
1.0x
00:00
00:00
DNOW.N
21.5%Positive
The earnings call reveals solid financial performance with a 3% revenue increase and strong EBITDA, despite some international losses. A robust cash position and share repurchase program further bolster investor confidence. Although Q3 revenue may decline slightly, the optimistic 2024 guidance and strategic focus on M&A and digital initiatives are positive. The Q&A section highlights management's adaptability and strategic foresight, despite some vague responses. Given the market cap of $1.44 billion, the stock is likely to see a positive movement of 2% to 8%.
