DNOW Q3 revenue misses estimates, adjusted EPS beats

Reuters
Nov 05
DNOW Q3 revenue misses estimates, adjusted EPS beats

Overview

  • DNOW Q3 revenue was $634 mln, missing analyst expectations

  • Adjusted EPS for Q3 beats analyst expectations

Outlook

  • DNOW expects to close merger with MRC Global in Q4 2025

  • Company forecasts best full-year earnings ever in terms of EBITDA

  • DNOW focuses on customer service and innovation for future growth

Result Drivers

  • REVENUE GROWTH - DNOW achieved its highest revenue since Q4 2019, driven by strong operational performance

  • STRONG CASH POSITION - DNOW ended the quarter with $266 mln in cash and zero debt, providing a solid foundation for growth

Key Details

Metric

Beat/Miss

Actual

Consensus Estimate

Q3 Revenue

Miss

$634 mln

$637.13 mln (3 Analysts)

Q3 Adjusted EPS

Beat

$0.26

$0.23 (3 Analysts)

Q3 Adjusted Net Income

$28 mln

Q3 Net Income

$25 mln

Q3 Adjusted EBITDA

$51 mln

Analyst Coverage

  • The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 1 "strong buy" or "buy", 1 "hold" and no "sell" or "strong sell"

  • The average consensus recommendation for the industrial machinery & equipment peer group is "buy"

  • Wall Street's median 12-month price target for DNOW Inc is $17.00, about 14.1% above its November 4 closing price of $14.60

  • The stock recently traded at 16 times the next 12-month earnings vs. a P/E of 17 three months ago

Press Release: ID:nBw8HR3Rna

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact RefinitivNewsSupport@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)

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