Latest news with #DistributionNOW
Yahoo
4 days ago
- Business
- Yahoo
DistributionNOW (DNOW) Q2 Earnings: What To Expect
Energy and industrial distributor DistributionNOW (NYSE:DNOW) will be announcing earnings results this Wednesday before market hours. Here's what to look for. DistributionNOW beat analysts' revenue expectations by 1.9% last quarter, reporting revenues of $599 million, up 6.4% year on year. It was a stunning quarter for the company, with a solid beat of analysts' EPS estimates and an impressive beat of analysts' EBITDA estimates. Is DistributionNOW a buy or sell going into earnings? Read our full analysis here, it's free. This quarter, analysts are expecting DistributionNOW's revenue to decline 3.3% year on year to $611.9 million, a reversal from the 6.6% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.21 per share. The majority of analysts covering the company have reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. DistributionNOW has missed Wall Street's revenue estimates four times over the last two years. Looking at DistributionNOW's peers in the industrial distributors segment, some have already reported their Q2 results, giving us a hint as to what we can expect. Watsco's revenues decreased 3.6% year on year, missing analysts' expectations by 7.2%, and FTAI Aviation reported revenues up 52.4%, topping estimates by 5.8%. Watsco traded down 2.7% following the results while FTAI Aviation was up 26.5%. Read our full analysis of Watsco's results here and FTAI Aviation's results here. Investors in the industrial distributors segment have had steady hands going into earnings, with share prices up 1.4% on average over the last month. DistributionNOW is up 8.9% during the same time and is heading into earnings with an average analyst price target of $17 (compared to the current share price of $14.88). Here at StockStory, we certainly understand the potential of thematic investing. Diverse winners from Microsoft (MSFT) to Alphabet (GOOG), Coca-Cola (KO) to Monster Beverage (MNST) could all have been identified as promising growth stories with a megatrend driving the growth. So, in that spirit, we've identified a relatively under-the-radar profitable growth stock benefiting from the rise of AI, available to you FREE via this link. StockStory is growing and hiring equity analyst and marketing roles. Are you a 0 to 1 builder passionate about the markets and AI? See the open roles here.
Yahoo
27-06-2025
- Business
- Yahoo
Why Is DistributionNOW (DNOW) Stock Soaring Today
Shares of energy and industrial distributor DistributionNOW (NYSE:DNOW) jumped 9.8% in the morning session after the company announced it will merge with MRC Global in an all-stock transaction. The deal will create a leading energy and industrial solutions provider with a combined enterprise value of approximately $3.0 billion. Under the terms of the agreement, MRC Global shareholders will receive 0.9489 shares of DNOW common stock for each share of MRC Global they own. Upon closing, DNOW shareholders will own approximately 56.5% of the combined company, with MRC Global shareholders owning the remaining 43.5%. The merger is expected to generate significant value for shareholders, with an estimated $70 million in annual cost savings within three years. The combination is also projected to be accretive to adjusted earnings per share in the double-digits within the first year after the deal is finalized. This strategic move combines the complementary footprints of both companies across key energy and industrial centers in the United States. Is now the time to buy DistributionNOW? Access our full analysis report here, it's free. DistributionNOW's shares are somewhat volatile and have had 10 moves greater than 5% over the last year. In that context, today's move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business. The biggest move we wrote about over the last year was 4 months ago when the stock gained 20.3% on the news that the company reported strong fourth-quarter results, significantly surpassing analysts' sales, EPS, and EBITDA estimates. The company also doubled the size of its share repurchase program to $160m, highlighting the focus on returning value to shareholders. Zooming out, we think this quarter featured some important positives. DistributionNOW is up 25.4% since the beginning of the year, and at $16.24 per share, it is trading close to its 52-week high of $17.59 from February 2025. Investors who bought $1,000 worth of DistributionNOW's shares 5 years ago would now be looking at an investment worth $1,895. Unless you've been living under a rock, it should be obvious by now that generative AI is going to have a huge impact on how large corporations do business. While Nvidia and AMD are trading close to all-time highs, we prefer a lesser-known (but still profitable) semiconductor stock benefiting from the rise of AI. Click here to access our free report on our favorite semiconductor growth story. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
11-06-2025
- Business
- Yahoo
DNOW Q1 Earnings Call: Margin Resilience and Market Diversification Amid Tariff Uncertainty
Energy and industrial distributor DistributionNOW (NYSE:DNOW) reported revenue ahead of Wall Street's expectations in Q1 CY2025, with sales up 6.4% year on year to $599 million. Its non-GAAP profit of $0.22 per share was 26.9% above analysts' consensus estimates. Is now the time to buy DNOW? Find out in our full research report (it's free). Revenue: $599 million vs analyst estimates of $587.8 million (6.4% year-on-year growth, 1.9% beat) Adjusted EPS: $0.22 vs analyst estimates of $0.17 (26.9% beat) Adjusted EBITDA: $46 million vs analyst estimates of $40.4 million (7.7% margin, 13.9% beat) Operating Margin: 5%, in line with the same quarter last year Market Capitalization: $1.57 billion DistributionNOW's first quarter results were shaped by steady demand in U.S. midstream infrastructure and continued momentum in the company's Process Solutions segment, despite a largely unchanged U.S. rig count and lower completions activity. Management pointed to resilient gross margins and a diversified market mix as core reasons for outperforming expectations. CEO David Cherechinsky highlighted that the quarter delivered the second-best first quarter EBITDA in company history, noting, 'This is notable given the misunderstood perception that the upstream sector alone drives opportunities for DNOW.' The company's recent acquisition in Singapore further contributed to expansion in the Asia Pacific region and strengthened its MacLean International brand, underscoring the importance of international diversification. Cherechinsky also emphasized the effectiveness of DNOW's supply chain repositioning in response to previous tariff rounds and supply disruptions, which allowed the company to maintain operational flexibility. Looking ahead, DistributionNOW's outlook hinges on its ability to manage tariff-driven cost pressures, capitalize on U.S. midstream opportunities, and further penetrate adjacent industrial markets. Management reaffirmed full-year revenue guidance with expectations of flat to high-single-digit growth, supported by continued investment in digital initiatives and targeted M&A. Cherechinsky acknowledged ongoing macro uncertainty, driven by evolving tariffs and fluctuating oil prices, stating, 'The dynamics of this environment remain volatile, leading to fluctuations in market sentiment.' The company's strategy includes passing on supplier cost increases, optimizing pricing structures, and leveraging its purchasing power to buffer against inflation and supply chain volatility. While risks remain from potential declines in U.S. rig activity, DNOW anticipates that midstream demand and its inventory planning will help offset upstream headwinds and support earnings stability. Management attributed first quarter performance to execution in U.S. midstream and Process Solutions, strategic inventory planning, and swift adaptation to tariff and supply chain changes. Midstream and Process Solutions momentum: Increased activity in U.S. midstream infrastructure and a full-quarter contribution from the Trojan acquisition boosted growth, with Process Solutions delivering its highest-ever quarterly revenue contribution. Strategic inventory build: The company intentionally increased inventory in anticipation of tariff-related supply disruptions, positioning itself to maintain product availability and optimize procurement costs as tariff impacts unfold. International expansion with acquisition: The acquisition of a Singapore-based distributor expanded DistributionNOW's MacLean International offering in Asia Pacific, targeting diversified end markets such as marine, petrochemical, and data centers. Digital transformation progress: DigitalNOW initiatives drove efficiencies, with digital revenue reaching a record 53% of SAP-related sales. Management highlighted the rollout of AI-powered process automation, including certificate indexing and system integration. Tariff and inflation management: The company's supply chain adjustments reduced dependence on China, with most products sourced domestically or from alternative international suppliers. Management expects to pass on cost increases and adjust pricing to protect margins as new tariffs take effect. DistributionNOW's forward guidance is shaped by tariff-driven pricing, midstream growth, and ongoing diversification into adjacent markets. Tariffs and pricing strategy: Management expects recently announced tariffs and supplier cost inflation to drive higher input costs, but plans to pass these through to customers via pricing adjustments. The company anticipates that its inventory position and sourcing flexibility will help maintain gross margin levels. U.S. midstream and Process Solutions growth: Demand in U.S. midstream, including infrastructure expansions and gathering asset investments, is projected to remain strong. Process Solutions, strengthened by recent acquisitions, is expected to capture additional revenue from industrial and energy transition markets, such as water, wastewater, and data centers. M&A and market adjacencies: DistributionNOW intends to pursue further acquisitions, particularly in U.S. Process Solutions, and seeks to grow in adjacent sectors like mining, chemicals, and renewable energy. Management noted that diversification efforts are designed to reduce reliance on upstream drilling and completion activity, mitigating downside risk from potential rig count declines. Looking forward, the StockStory team will monitor (1) how effectively DistributionNOW passes on tariff-related cost increases to customers and preserves gross margins, (2) continued expansion and integration of recent acquisitions in international and Process Solutions markets, and (3) the pace of digital adoption and AI-driven process improvements. Progress in adjacent market penetration and the impact of rig count trends will also be watched closely. DistributionNOW currently trades at a forward EV-to-EBITDA ratio of 10.3×. In the wake of earnings, is it a buy or sell? See for yourself in our full research report (it's free). The market surged in 2024 and reached record highs after Donald Trump's presidential victory in November, but questions about new economic policies are adding much uncertainty for 2025. While the crowd speculates what might happen next, we're homing in on the companies that can succeed regardless of the political or macroeconomic environment. Put yourself in the driver's seat and build a durable portfolio by checking out our Top 9 Market-Beating Stocks. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025). Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-micro-cap company Kadant (+351% five-year return). Find your next big winner with StockStory today.
Yahoo
09-06-2025
- Business
- Yahoo
Earnings To Watch: Core & Main (CNM) Reports Q1 Results Tomorrow
Water and fire protection solutions company Core & Main (NYSE:CNM) will be reporting results tomorrow before the bell. Here's what investors should know. Core & Main beat analysts' revenue expectations by 1.7% last quarter, reporting revenues of $1.70 billion, up 17.9% year on year. It was a slower quarter for the company, with a miss of analysts' EPS estimates and a miss of analysts' adjusted operating income estimates. Is Core & Main a buy or sell going into earnings? Read our full analysis here, it's free. This quarter, analysts are expecting Core & Main's revenue to grow 6% year on year to $1.85 billion, slowing from the 10.6% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.54 per share. Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Core & Main has missed Wall Street's revenue estimates twice over the last two years. Looking at Core & Main's peers in the industrial distributors segment, some have already reported their Q1 results, giving us a hint as to what we can expect. DistributionNOW delivered year-on-year revenue growth of 6.4%, beating analysts' expectations by 1.9%, and MRC Global reported a revenue decline of 8.4%, in line with consensus estimates. DistributionNOW traded down 9.1% following the results while MRC Global was also down 6.1%. Read our full analysis of DistributionNOW's results here and MRC Global's results here. Investors in the industrial distributors segment have had steady hands going into earnings, with share prices up 1.5% on average over the last month. Core & Main is up 12.8% during the same time and is heading into earnings with an average analyst price target of $60.12 (compared to the current share price of $60.10). Unless you've been living under a rock, it should be obvious by now that generative AI is going to have a huge impact on how large corporations do business. While Nvidia and AMD are trading close to all-time highs, we prefer a lesser-known (but still profitable) semiconductor stock benefiting from the rise of AI. Click here to access our free report on our favorite semiconductor growth story. Error while retrieving data Sign in to access your portfolio Error while retrieving data Error while retrieving data Error while retrieving data Error while retrieving data
Yahoo
28-04-2025
- Business
- Yahoo
3 Reasons to Avoid DNOW and 1 Stock to Buy Instead
Since April 2020, the S&P 500 has delivered a total return of 92.4%. But one standout stock has nearly doubled the market - over the past five years, DistributionNOW has surged 162% to $15.52 per share. Its momentum hasn't stopped as it's also gained 29.5% in the last six months thanks to its solid quarterly results, beating the S&P by 34.9%. Is now the time to buy DistributionNOW, or should you be careful about including it in your portfolio? Get the full stock story straight from our expert analysts, it's free. Despite the momentum, we're swiping left on DistributionNOW for now. Here are three reasons why DNOW doesn't excite us and a stock we'd rather own. Spun off from National Oilwell Varco, DistributionNOW (NYSE:DNOW) provides distribution and supply chain solutions for the energy and industrial end markets. A company's long-term performance is an indicator of its overall quality. Any business can have short-term success, but a top-tier one grows for years. DistributionNOW's demand was weak over the last five years as its sales fell at a 4.3% annual rate. This wasn't a great result and is a sign of poor business quality. Operating margin is one of the best measures of profitability because it tells us how much money a company takes home after procuring and manufacturing its products, marketing and selling those products, and most importantly, keeping them relevant through research and development. DistributionNOW was roughly breakeven when averaging the last five years of quarterly operating profits, one of the worst outcomes in the industrials sector. This result isn't too surprising given its low gross margin as a starting point. Although long-term earnings trends give us the big picture, we like to analyze EPS over a shorter period to see if we are missing a change in the business. Sadly for DistributionNOW, its EPS declined by 1.7% annually over the last two years while its revenue grew by 5.4%. This tells us the company became less profitable on a per-share basis as it expanded. We see the value of companies helping their customers, but in the case of DistributionNOW, we're out. With its shares beating the market recently, the stock trades at 20.4× forward price-to-earnings (or $15.52 per share). This valuation tells us a lot of optimism is priced in - we think there are better investment opportunities out there. We'd suggest looking at a fast-growing restaurant franchise with an A+ ranch dressing sauce. Donald Trump's victory in the 2024 U.S. Presidential Election sent major indices to all-time highs, but stocks have retraced as investors debate the health of the economy and the potential impact of tariffs. While this leaves much uncertainty around 2025, a few companies are poised for long-term gains regardless of the political or macroeconomic climate, like our Top 6 Stocks for this week. This is a curated list of our High Quality stocks that have generated a market-beating return of 175% over the last five years. Stocks that made our list in 2019 include now familiar names such as Nvidia (+2,183% between December 2019 and December 2024) as well as under-the-radar businesses like Comfort Systems (+751% five-year return). Find your next big winner with StockStory today for free. Sign in to access your portfolio
