NOW Inc. (NYSE: DNOW) saw its stock price soar 5.21% during intraday trading on Wednesday, following the release of its better-than-expected third-quarter earnings report and the announcement of a strategic merger. The industrial distribution company, which operates under the DistributionNOW and DNOW brands, demonstrated strong financial performance and an optimistic future outlook.

The company reported adjusted earnings per share of $0.26 for the third quarter, surpassing the analyst consensus estimate of $0.23 by 11.59%. This represents a significant 23.81% increase from the $0.21 per share reported in the same period last year. NOW Inc.'s quarterly revenue reached $634 million, showing a 4.62% year-over-year growth, although slightly missing the analyst estimate of $637.13 million by 0.49%.

Adding to the positive sentiment, NOW Inc. and MRC Global (NYSE: MRC) announced a definitive merger agreement valued at approximately $1.5 billion. The merger, expected to close in the fourth quarter of 2025, has likely contributed to investor enthusiasm about the company's future prospects. With a strong balance sheet showing $266 million in cash and no long-term debt, as well as a total liquidity of about $629 million, NOW Inc. appears well-positioned for future growth and to execute on its strategic initiatives.