Energy and industrial distributor DNOW (NYSE: DNOW) will be reporting results this Thursday before market open. Here’s what to expect.
DNOW missed analysts’ revenue expectations last quarter, reporting revenues of $959 million, up 68% year on year. It was a softer quarter for the company, with a significant miss of analysts’ revenue estimates and a significant miss of analysts’ EBITDA estimates.
Is DNOW a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, the market is expecting DNOW’s revenue to grow 75.3% year on year, improving from the 6.4% increase it recorded in the same quarter last year.
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. DNOW has missed Wall Street’s revenue estimates multiple times over the last two years.
Looking at DNOW’s peers in the industrial distributors segment, some have already reported their Q1 results, giving us a hint as to what we can expect. Watsco posted flat year-on-year revenue, beating analysts’ expectations by 3.4%, and Richardson Electronics reported revenues up 3.1%, topping estimates by 4.4%. Watsco traded down 6.2% following the results while Richardson Electronics was up 22.7%.
Read our full analysis of Watsco’s results here and Richardson Electronics’s results here.
There has been positive sentiment among investors in the industrial distributors segment, with share prices up 9.9% on average over the last month. DNOW is up 12.6% during the same time and is heading into earnings with an average analyst price target of $16 (compared to the current share price of $13.71).
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