DNOW Q2 profit beats on US segment growth
DNOW Q2 profit beats on US segment growth
Overview
US energy distributor's Q2 revenue rose, beating analyst expectations
Adjusted EPS for Q2 beat analyst expectations
Company repurchased $25 mln of stock in Q2, $75 mln year-to-date
Outlook
Company did not provide specific guidance for the current quarter or full year
Result Drivers
U.S. SEGMENT GROWTH - Co said revenue rose 13% in the U.S. segment, with midstream, gas utility, and upstream sectors showing strong sequential growth
OPERATIONAL EXECUTION - Adjusted EBITDA rose 54% sequentially, driven by stronger volumes and execution of integration and cost management initiatives
CASH FLOW IMPROVEMENT - Record Q2 cash flow from operations attributed to strong collections and inventory streamlining
Company press release: ID:nGNX8W0Xjl
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q2 Revenue | Beat | $1.31 bln | $1.27 bln (5 Analysts) |
Q2 Adjusted EPS | Beat | $0.12 | $0.10 (5 Analysts) |
Q2 Adjusted Net Income |
| $21 mln |
|
Q2 Net Loss |
| $21 mln |
|
Q2 Adjusted EBITDA |
| $60 mln |
|
Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 5 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"
The average consensus recommendation for the industrial machinery & equipment peer group is "buy"
Wall Street's median 12-month price target for DNOW Inc. is $16.00, about 12.5% above its August 5 closing price of $14.22
The stock recently traded at 22 times the next 12-month earnings vs. a P/E of 17 three months ago
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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)