DNOW (DNOW) Tops Q3 Earnings Estimates

Core Insights - DNOW reported quarterly earnings of $0.26 per share, exceeding the Zacks Consensus Estimate of $0.24 per share, and up from $0.21 per share a year ago, representing an earnings surprise of +8.33% [1] - The company posted revenues of $634 million for the quarter ended September 2025, which missed the Zacks Consensus Estimate by 0.81%, but increased from $606 million year-over-year [2] - DNOW has surpassed consensus EPS estimates in all four of the last quarters and has topped consensus revenue estimates three times during the same period [2] Earnings Outlook - The sustainability of DNOW's stock price movement will depend on management's commentary during the earnings call and future earnings expectations [3][4] - The current consensus EPS estimate for the upcoming quarter is $0.20 on revenues of $596.6 million, and for the current fiscal year, it is $0.94 on revenues of $2.46 billion [7] Industry Context - The Manufacturing - General Industrial industry, to which DNOW belongs, is currently ranked in the bottom 42% of over 250 Zacks industries, indicating potential challenges for stock performance [8] - Empirical research suggests a strong correlation between near-term stock movements and trends in earnings estimate revisions, which could impact DNOW's stock performance [5]