Investors might want to bet on DNOW (DNOW) , as it has been recently upgraded to a Zacks Rank #1 (Strong Buy). This upgrade primarily reflects an upward trend in earnings estimates, which is one of the most powerful forces impacting stock prices. The sole determinant of the Zacks rating is a company's changing earnings picture. The Zacks Consensus Estimate -- the consensus of EPS estimates from the sell-side analysts covering the stock -- for the current and following years is tracked by the system. Since a ...

baona The Thesis DNOW Inc. (NYSE:DNOW) continued to see double digit decline primarily in its Canada segment as it entered 2024 mainly due to unfavorable weather events during the quarter. However, the delayed project due to weather impact are anticipated to be done in coming quarters of 2024 which should drive the regions sales in going ahead. The activity in the U.S. segment also remains healthy, which along with benefits from addition of Whitco should drive the company's topline in 2024. The longer term ...

Have you assessed how the international operations of DNOW (DNOW) performed in the quarter ended March 2024? For this energy and industrial distribution company, possessing an expansive global footprint, parsing the trends of international revenues could be critical to gauge its financial resilience and growth prospects. Prospective Revenues in International Markets Wall Street analysts expect DNOW to report $638 million in total revenue for the current fiscal quarter, indicating an increase of 7.4% from th ...

DNOW Inc. (NYSE:DNOW) Q1 2024 Earnings Conference Call May 10, 2024 9:00 AM ET Company Participants Brad Wise - Vice President, Digital Strategy and Investor Relations David Cherechinsky - President and Chief Executive Officer Mark Johnson - Senior Vice President and Chief Financial Officer Conference Call Participants Nathan Jones - Stifel Max Kane - Stephens Jeff Robertson - Water Tower Research Operator Good morning. My name is Ian and I will be your conference operator today. At this time, I would like ...

[Part I - Financial Information](index=3&type=section&id=Part%20I%20-%20Financial%20Information) [Financial Statements](index=3&type=section&id=Item%201.%20Financial%20Statements) DNOW Inc. reported Q1 2024 revenue of $563 million and net income of $21 million, with total assets increasing to $1,594 million and operating cash flow improving to $81 million Consolidated Statements of Operations Highlights (Unaudited) | Metric | Q1 2024 (in millions) | Q1 2023 (in millions) | Change | | :--- | :--- | :--- | :--- | | **Revenue** | $563 | $584 | -3.6% | | **Operating Profit** | $28 | $35 | -20.0% | | **Net Income attributable to DNOW Inc.** | $21 | $31 | -32.3% | | **Diluted EPS** | $0.19 | $0.28 | -32.1% | Consolidated Balance Sheet Highlights (Unaudited) | Metric | March 31, 2024 (in millions) | Dec 31, 2023 (in millions) | Change | | :--- | :--- | :--- | :--- | | **Cash and cash equivalents** | $188 | $299 | -$111 | | **Inventories, net** | $428 | $366 | +$62 | | **Goodwill** | $192 | $139 | +$53 | | **Total Assets** | $1,594 | $1,529 | +$65 | | **Total Liabilities** | $515 | $466 | +$49 | | **Total Stockholders' Equity** | $1,079 | $1,063 | +$16 | Consolidated Statements of Cash Flows Highlights (Unaudited) | Metric | Q1 2024 (in millions) | Q1 2023 (in millions) | | :--- | :--- | :--- | | **Net cash provided by (used in) operating activities** | $81 | $(6) | | **Net cash provided by (used in) investing activities** | $(188) | $(5) | | **Net cash provided by (used in) financing activities** | $(4) | $(34) | | **Net change in cash and cash equivalents** | $(111) | $(44) | - In Q1 2024, the company acquired Whitco Supply, LLC for **$185 million**, net of cash, resulting in **$53 million** in goodwill and **$30 million** in intangible assets in the U.S. segment[64](index=64&type=chunk)[65](index=65&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=20&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management attributes the 3.6% revenue decline to weaker project activity in Canada and International markets, partially offset by U.S. growth, while maintaining a constructive outlook and strong liquidity [Company Overview](index=20&type=section&id=Company%20Overview) DNOW is a global distributor of energy and industrial products, serving all energy sectors and industrial markets, with a focus on supply chain solutions and digital platforms - DNOW operates globally, serving energy and industrial markets in approximately **80 countries** through a network of **170 locations**[17](index=17&type=chunk)[69](index=69&type=chunk)[75](index=75&type=chunk) - The company provides products and supply chain solutions to all sectors of the energy industry, as well as to industrial markets like chemical processing, mining, and water/wastewater[71](index=71&type=chunk) - DNOW is expanding into energy transition markets, including greenhouse gas reduction, renewable fuels, wind, solar, and hydrogen[17](index=17&type=chunk)[71](index=71&type=chunk) - The DigitalNOW® platform offers customers technology for e-commerce, data visualization, and supply chain optimization[70](index=70&type=chunk) [Operating Environment Overview](index=23&type=section&id=Operating%20Environment%20Overview) The Q1 2024 operating environment showed mixed signals with declining U.S. and Canadian rig counts and natural gas prices, offset by slight increases in international rig count and WTI crude prices Key Industry Indicators: Q1 2024 vs. Q1 2023 | Indicator | Q1 2024 | Q1 2023 | % Change | | :--- | :--- | :--- | :--- | | U.S. Active Drilling Rigs | 623 | 761 | (18.1%) | | Canada Active Drilling Rigs | 209 | 223 | (6.3%) | | International Active Drilling Rigs | 965 | 915 | 5.5% | | WTI Crude Prices ($/barrel) | $77.56 | $76.08 | 1.9% | | Natural Gas Prices ($/MMBtu) | $2.13 | $2.65 | (19.6%) | | U.S. Wells Completed | 2,597 | 3,053 | (14.9%) | Key Industry Indicators: Q1 2024 vs. Q4 2023 | Indicator | Q1 2024 | Q4 2023 | % Change | | :--- | :--- | :--- | :--- | | Worldwide Active Drilling Rigs | 1,797 | 1,770 | 1.5% | | Natural Gas Prices ($/MMBtu) | $2.13 | $2.74 | (22.3%) | | Hot-Rolled Coil Prices ($/short ton) | $961.95 | $825.45 | 16.5% | | U.S. Wells Completed | 2,597 | 2,903 | (10.5%) | [Results of Operations](index=25&type=section&id=Results%20of%20Operations) Q1 2024 total revenue decreased 3.6% to $563 million, with operating profit down 20% to $28 million, driven by declines in Canada and International segments despite U.S. growth Revenue and Operating Profit by Segment (in millions) | Segment | Revenue Q1 2024 | Revenue Q1 2023 | Operating Profit Q1 2024 | Operating Profit Q1 2023 | | :--- | :--- | :--- | :--- | :--- | | **United States** | $435 | $427 | $23 | $23 | | **Canada** | $66 | $83 | $3 | $8 | | **International** | $62 | $74 | $2 | $4 | | **Total** | **$563** | **$584** | **$28** | **$35** | - U.S. revenue increased by **1.9%** due to an acquisition, but operating profit was flat due to associated expenses[94](index=94&type=chunk)[95](index=95&type=chunk) - Canada revenue declined **20.5%** and International revenue declined **16.2%**, both primarily due to weaker project activity, leading to lower operating profits[96](index=96&type=chunk)[97](index=97&type=chunk)[98](index=98&type=chunk) - The effective tax rate for Q1 2024 was **27.6%**, significantly higher than **8.6%** in Q1 2023, as a prior-year benefit from the release of a valuation allowance did not recur[103](index=103&type=chunk)[48](index=48&type=chunk) [Non-GAAP Financial Measure and Reconciliation](index=28&type=section&id=Non-GAAP%20Financial%20Measure%20and%20Reconciliation) The company's Q1 2024 EBITDA excluding other costs was $39 million (6.9% of revenue), a non-GAAP measure used to evaluate operating performance Reconciliation of Net Income to EBITDA excluding other costs (in millions) | Line Item | Q1 2024 | Q1 2023 | | :--- | :--- | :--- | | GAAP net income attributable to DNOW Inc. | $21 | $31 | | Adjustments (Interest, Tax, D&A, etc.) | $18 | $16 | | **EBITDA excluding other costs** | **$39** | **$47** | | **EBITDA % excluding other costs** | **6.9%** | **8.0%** | - Other costs excluded from EBITDA in Q1 2024 totaled **$3 million**, related to transaction charges from the recent acquisition[106](index=106&type=chunk) [Liquidity and Capital Resources](index=29&type=section&id=Liquidity%20and%20Capital%20Resources) DNOW maintains a strong liquidity position with $188 million in cash and $465 million available credit, generating $81 million in operating cash flow despite a $185 million acquisition - The company had **$188 million** in cash and cash equivalents as of March 31, 2024[108](index=108&type=chunk) - The company has a **$500 million** revolving credit facility with no borrowings and **$465 million** in availability as of March 31, 2024[109](index=109&type=chunk)[41](index=41&type=chunk) - Cash from operating activities was **$81 million** in Q1 2024, an **$87 million** improvement from Q1 2023, driven by better working capital management[111](index=111&type=chunk)[112](index=112&type=chunk) - During Q1 2024, the company used **$185 million** for a business acquisition and repurchased over **$1 million** of its common stock, with **$22 million** remaining under the repurchase program[113](index=113&type=chunk)[117](index=117&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=32&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company faces market risks from foreign currency fluctuations, particularly the Canadian dollar and British pound, and commodity steel pricing, which are managed through hedging and inventory control - The company is exposed to foreign currency risk as approximately **25%** of its Q1 2024 net sales were outside the U.S[122](index=122&type=chunk) - The most significant foreign currency exposures are to the Canadian dollar, followed by the British pound[122](index=122&type=chunk) - A hypothetical **10%** change in foreign currency rates would have resulted in less than a **$1 million** change in net income for Q1 2024[127](index=127&type=chunk) - The company is sensitive to steel prices, particularly for tubular products, and mitigates this risk by managing inventory levels[128](index=128&type=chunk) [Controls and Procedures](index=34&type=section&id=Item%204.%20Controls%20and%20Procedures) Management, including the CEO and CFO, evaluated the company's disclosure controls and procedures and concluded they were effective as of March 31, 2024, with no material changes to internal control over financial reporting during the quarter - The CEO and CFO concluded that the company's disclosure controls and procedures are effective at a reasonable assurance level as of the end of the reporting period[129](index=129&type=chunk) - No changes occurred during the last fiscal quarter that materially affected, or are reasonably likely to materially affect, the company's internal control over financial reporting[130](index=130&type=chunk) [Part II - Other Information](index=35&type=section&id=Part%20II%20-%20Other%20Information) [Unregistered Sales of Equity Securities and Use of Proceeds](index=35&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) In Q1 2024, the company repurchased 168,055 shares for $1.7 million and acquired 319,429 shares from employees for tax obligations, with $22 million remaining in the repurchase program Share Repurchase Summary Q1 2024 | Month | Shares Purchased (Public Program) | Average Price Paid | | :--- | :--- | :--- | | January 2024 | 96,984 | $10.05 | | February 2024 | 71,071 | $12.66 | | March 2024 | 0 | N/A | | **Total** | **168,055** | **N/A** | - The company is authorized to purchase up to **$80 million** of its common stock through December 31, 2024, with approximately **$22 million** remaining available under this program as of March 31, 2024[131](index=131&type=chunk)[132](index=132&type=chunk) - An additional **319,429 shares** were acquired from employees to settle tax obligations related to vested restricted stock, separate from the public repurchase program[131](index=131&type=chunk) [Other Information](index=35&type=section&id=Item%205.%20Other%20Information) The company reported that during the first quarter of 2024, no director or officer adopted or terminated a Rule 10b5-1 trading arrangement or a non-Rule 10b5-1 trading arrangement - No director or officer of the Company adopted or terminated a 'Rule 10b5-1 trading arrangement' or 'non-Rule 10b5-1 trading arrangement' during Q1 2024[132](index=132&type=chunk) [Exhibits](index=36&type=section&id=Item%206.%20Exhibits) This section provides a list of all exhibits filed with the Form 10-Q, including the company's bylaws, credit agreements, executive employment agreements, and various required certifications - This section lists exhibits filed with the report, such as corporate governance documents, material contracts, and certifications required by the Sarbanes-Oxley Act[133](index=133&type=chunk)

Exhibit 99.1 Earnings Conference Call May 10, 2024 8:00 a.m. CT 1 (888) 660-6431 (within North America) 1 (929) 203-2118 (outside of North America) Access Code: 7372055 Webcast: ir.dnow.com DNOW Reports First Quarter 2024 Results HOUSTON, TX, May 10, 2024 – DNOW Inc. (NYSE: DNOW) announced results for the first quarter ended March 31, 2024. First Quarter 2024 Highlights David Cherechinsky, President and CEO of DNOW, added, "I am incredibly pleased with the progress we made this quarter, generating strong fr ...

Investors are always looking for stocks that are poised to beat at earnings season and DNOW Inc. (DNOW) may be one such company. The firm has earnings coming up pretty soon, and events are shaping up quite nicely for their report.That is because DNOW is seeing favorable earnings estimate revision activity as of late, which is generally a precursor to an earnings beat. After all, analysts raising estimates right before earnings — with the most up-to-date information possible — is a pretty good indicator of s ...

DNOW Inc. (DNOW) is scheduled to release first-quarter 2024 results on May 10, before market open.The company has an impressive earnings surprise history, having beat the Zacks Consensus Estimate in three of the preceding four quarters while missing the mark in one. The earnings surprise was 15.6%, on average.Let’s see how things have shaped up for DNOW this earnings season.Factors to NoteStronger project activity and an increase in international rig count are expected to have supported DNOW’s international ...

If you are looking for a stock that has a solid history of beating earnings estimates and is in a good position to maintain the trend in its next quarterly report, you should consider DNOW (DNOW) . This company, which is in the Zacks Manufacturing - General Industrial industry, shows potential for another earnings beat.When looking at the last two reports, this energy and industrial distribution company has recorded a strong streak of surpassing earnings estimates. The company has topped estimates by 25.42% ...

DNOW (DNOW) closed at $14.68 in the latest trading session, marking a -0.61% move from the prior day. The stock trailed the S&P 500, which registered a daily loss of 0.46%. Meanwhile, the Dow experienced a drop of 0.98%, and the technology-dominated Nasdaq saw a decrease of 0.64%.The energy and industrial distribution company's stock has dropped by 3.15% in the past month, falling short of the Industrial Products sector's loss of 2.71% and the S&P 500's loss of 3.04%.The upcoming earnings release of DNOW wi ...