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DNOW misses Q1 earnings, revenue estimates; Raises FY guidance

EditorRachael Rajan
Published 10/05/2024, 09:14 pm
© Reuters.
DNOW
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HOUSTON - DNOW Inc. (NYSE: DNOW) reported its first-quarter financial results, revealing earnings that fell short of Wall Street expectations. The company announced an adjusted EPS of $0.21, which was $0.03 below the analyst consensus of $0.24. Revenue for the quarter was also below expectations at $563 million, compared to the consensus estimate of $567.87 million.

In comparison to the same period last year, the company's revenue experienced a slight decrease. Despite this, DNOW Inc. expressed confidence in its performance and future prospects. David Cherechinsky, President and CEO of DNOW, commented on the company's robust free cash flow of $80 million and the successful acquisition of Whitco Supply LLC, which has bolstered the company's capabilities in the U.S. midstream market.

The CEO's optimism is further reflected in the company's upgraded full-year outlook for 2024. DNOW now anticipates revenue growth in the mid-to-high single-digit percentage range, with a projected second-quarter revenue increase of ten to fifteen percent, assuming heightened market activity.

DNOW ended the first quarter debt-free, with $188 million in cash, following the strategic acquisition of Whitco Supply. The company's solid balance sheet and diversified customer base are seen as key factors in its positive outlook for the remainder of the year.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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