DNOW (DNOW) Reliance on International Sales: What Investors Need to Know

Core Viewpoint - Analyzing DNOW's international operations is crucial for understanding its financial strength and growth potential, especially given its global presence [1][2][3] Group 1: Financial Performance - DNOW's total revenue for the quarter ending September 2024 was $606 million, reflecting a 3.1% increase from the previous year [4] - Revenue from Canada was $65 million, accounting for 10.73% of total revenue, which was a surprise increase of 9.06% compared to the expected $59.6 million [5] - International revenue was $59 million, making up 9.74% of total revenue, which was an 11.28% decline from the projected $66.5 million [6] Group 2: Future Projections - Analysts predict DNOW will report $544 million in total revenue for the current fiscal quarter, a 2% decline from the previous year, with Canada and International expected to contribute 11.3% ($61.2 million) and 12.7% ($69.1 million) respectively [7] - For the full year, total annual revenue is expected to reach $2.34 billion, a 0.9% increase from last year, with Canada and International projected to contribute 10.4% ($242.8 million) and 11.2% ($262.5 million) respectively [8] Group 3: Market Dynamics - The reliance on international markets presents both opportunities and challenges for DNOW, making it essential to monitor international revenue trends for future projections [9] - In the context of increasing global interconnections and geopolitical tensions, analysts are closely observing these trends to adjust earnings predictions [10]