NOW (NYSE:DNOW) Misses Q3 Revenue Estimates

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NOW (NYSE:DNOW) Misses Q3 Revenue Estimates Energy and industrial distributor NOW Inc. (NYSE:DNOW) missed Wall Street’s revenue expectations in Q3 CY2024 as sales rose 3.1% year on year to $606 ...

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(NYSE:DNOW) missed Wall Street’s revenue expectations in Q3 CY2024 as sales rose 3.1% year on year to $606 ...</p>\n\n<a href=\"https://finance.yahoo.com/news/now-nyse-dnow-misses-q3-123406307.html\">Source Link</a>\n\n</div>\n","source":"yahoofinance","html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>NOW (NYSE:DNOW) Misses Q3 Revenue Estimates</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nNOW (NYSE:DNOW) Misses Q3 Revenue Estimates\n</h2>\n\n<h4 class=\"meta\">\n\n\n2024-11-07 20:34 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://finance.yahoo.com/news/now-nyse-dnow-misses-q3-123406307.html><strong>StockStory</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>NOW (NYSE:DNOW) Misses Q3 Revenue Estimates \n \n\nEnergy and industrial distributor NOW Inc. (NYSE:DNOW) missed Wall Street’s revenue expectations in Q3 CY2024 as sales rose 3.1% year on year to $606 ...</p>\n\n<a href=\"https://finance.yahoo.com/news/now-nyse-dnow-misses-q3-123406307.html\">Source Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":"DNOW","symbol_name":"NOW Inc.","start_time":0,"source_url":"https://finance.yahoo.com/news/now-nyse-dnow-misses-q3-123406307.html","article_id":"2481202902","we_media_id":null,"thumbnails":["https://s.yimg.com/uu/api/res/1.2/N6jmyaFZM9PUO3d._ZYHeg--~B/aD03MDA7dz0xNDAwO2FwcGlkPXl0YWNoeW9u/https://media.zenfs.com/en/stockstory_922/1669a9d0c9bcad70aef054ca4ed6af9f"],"rights":null,"url":"https://stock-news.laohu8.com/highlight/detail?id=2481202902","pubTimestamp":1730982846,"sourceInfo":{"source_id":"yahoofinance","name":"雅虎金融"},"weMediaInfo":null,"summary":"Energy and industrial distributor NOW Inc.  missed Wall Street’s revenue expectations in Q3 CY2024 as sales rose 3.1% year on year to $606 million. Its non-GAAP profit of $0.21 per share was in line with analysts’ consensus estimates.Revenue: $606 million vs analyst estimates of $614.9 million . EBITDA: $42 million vs analyst estimates of $43.5 million . Gross Margin : 22.3%, in line with the same quarter last year. Operating Margin: 3.8%, down from 6.3% in the same quarter last year. EBITDA Margin: 6.9%, in line with the same quarter last year. Spun off from National Oilwell Varco, NOW Inc.  provides distribution and supply chain solutions for the energy and industrial end markets.This quarter, NOW’s revenue grew 3.1% year on year to $606 million, falling short of Wall Street’s estimates.Today’s young investors likely haven’t read the timeless lessons in Gorilla Game: Picking Winners In High Technology because it was written more than 20 years ago when Microsoft and Apple were first e","collect":0,"end_time":0,"defaultTopTitle":"yahoo.com","property":["earning"],"viewcount":null,"language":"en","relate_stocks":{"DNOW":"NOW Inc.","NOW":"ServiceNow","NYSE":"纽交所"},"translate_title":"NOW（纽约证券交易所股票代码：DNOW）未达到第三季度收入预期","themeId":null,"isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"DNOW":1,"NOW":1,"NYSE":1},"content_text":"NOW (NYSE:DNOW) Misses Q3 Revenue Estimates \n \n\nEnergy and industrial distributor NOW Inc. (NYSE:DNOW) missed Wall Street’s revenue expectations in Q3 CY2024 as sales rose 3.1% year on year to $606 million. Its non-GAAP profit of $0.21 per share was in line with analysts’ consensus estimates. \nIs now the time to buy NOW? Find out in our full research report.\n\nNOW (DNOW) Q3 CY2024 Highlights:\n\nRevenue: $606 million vs analyst estimates of $614.9 million (1.5% miss)\nAdjusted EPS: $0.21 vs analyst expectations of $0.21 (in line)\nEBITDA: $42 million vs analyst estimates of $43.5 million (3.4% miss)\nGross Margin (GAAP): 22.3%, in line with the same quarter last year\nOperating Margin: 3.8%, down from 6.3% in the same quarter last year\nEBITDA Margin: 6.9%, in line with the same quarter last year\nMarket Capitalization: $1.46 billion\n\n\nCompany Overview\nSpun off from National Oilwell Varco, NOW Inc. (NYSE:DNOW) provides distribution and supply chain solutions for the energy and industrial end markets.\nInfrastructure Distributors\nFocusing on narrow product categories that can lead to economies of scale, infrastructure distributors sell essential goods that often enjoy more predictable revenue streams. For example, the ongoing inspection, maintenance, and replacement of pipes and water pumps are critical to a functioning society, rendering them non-discretionary. Lately, innovation to address trends like water conservation has driven incremental sales. But like the broader industrials sector, infrastructure distributors are also at the whim of economic cycles as external factors like interest rates can greatly impact commercial and residential construction projects that drive demand for infrastructure products. \nSales Growth\nA company’s long-term performance can give signals about its business quality. Even a bad business can shine for one or two quarters, but a top-tier one grows for years. NOW’s demand was weak over the last five years as its sales fell by 5.2% annually, a rough starting point for our analysis. \n\nLong-term growth is the most important, but within industrials, a half-decade historical view may miss new industry trends or demand cycles. NOW’s annualized revenue growth of 8% over the last two years is above its five-year trend, suggesting some bright spots. \nThis quarter, NOW’s revenue grew 3.1% year on year to $606 million, falling short of Wall Street’s estimates. \nLooking ahead, sell-side analysts expect revenue to grow 2.2% over the next 12 months, a deceleration versus the last two years. This projection is underwhelming and shows the market thinks its products and services will face some demand challenges. \nToday’s young investors likely haven’t read the timeless lessons in Gorilla Game: Picking Winners In High Technology because it was written more than 20 years ago when Microsoft and Apple were first establishing their supremacy. But if we apply the same principles, then enterprise software stocks leveraging their own generative AI capabilities may well be the Gorillas of the future. So, in that spirit, we are excited to present our Special Free Report on a profitable, fast-growing enterprise software stock that is already riding the automation wave and looking to catch the generative AI next.\nOperating Margin\nOperating 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 them, and, most importantly, keeping them relevant through research and development. \nAlthough NOW was profitable this quarter from an operational perspective, it’s generally struggled over a longer time period. Its expensive cost structure has contributed to an average operating margin of negative 1.9% over the last five years. Unprofitable industrials companies require extra attention because they could get caught swimming naked when the tide goes out. It’s hard to trust that the business can endure a full cycle. \nOn the plus side, NOW’s annual operating margin rose by 31.7 percentage points over the last five years. Still, it will take much more for the company to show consistent profitability. \n\nIn Q3, NOW generated an operating profit margin of 3.8%, down 2.5 percentage points year on year. Since NOW’s operating margin decreased more than its gross margin, we can assume it was recently less efficient because expenses such as marketing, R&D, and administrative overhead increased. \nEarnings Per Share\nAnalyzing revenue trends tells us about a company’s historical growth, but the long-term change in its earnings per share (EPS) points to the profitability of that growth – for example, a company could inflate its sales through excessive spending on advertising and promotions. \nNOW’s EPS grew at an astounding 18.2% compounded annual growth rate over the last five years, higher than its 5.2% annualized revenue declines. This tells us management adapted its cost structure in response to a challenging demand environment. \n\nDiving into NOW’s quality of earnings can give us a better understanding of its performance. As we mentioned earlier, NOW’s operating margin declined this quarter but expanded by 31.7 percentage points over the last five years. Its share count also shrank by 2%, and these factors together are positive signs for shareholders because improving profitability and share buybacks turbocharge EPS growth relative to revenue growth. \nLike with revenue, we analyze EPS over a shorter period to see if we are missing a change in the business. For NOW, its two-year annual EPS growth of 8.3% was lower than its five-year trend. We hope its growth can accelerate in the future. \nIn Q3, NOW reported EPS at $0.21, down from $0.26 in the same quarter last year. This print was close to analysts’ estimates. Over the next 12 months, Wall Street expects NOW’s full-year EPS of $0.91 to shrink by 5.1%. \nKey Takeaways from NOW’s Q3 Results\n We struggled to find many strong positives in these results as its revenue and EBITDA fell short of Wall Street’s estimates. Overall, this was a weaker quarter. The stock remained flat at $13.75 immediately after reporting. \nSo do we think NOW is an attractive buy at the current price? When making that decision, it’s important to consider its valuation, business qualities, as well as what has happened in the latest quarter. We cover that in our actionable full research report which you can read here, it’s free.","kind":null,"is_publish_news":true,"is_publish_highlight":false,"is_publish_live":false,"is_publish_wemedia":null,"editions":null,"column":"","sentiment":"0","news_tag":"","news_rank":0,"symbols":[],"gpt_button":1},"commentList":[],"isCommentEnd":true,"newsSizeData":{"likeSize":0,"commentSize":0,"repostSize":0,"favoriteSize":0,"likeStatus":false,"favoriteStatus":false},"APP":{"userAgent":"Mozilla/5.0 AppleWebKit/537.36 (KHTML, like Gecko; compatible; ClaudeBot/1.0; +claudebot@anthropic.com)","isDev":false,"isTTM":true,"deviceId":"web-server-community-laohu8-v3","version":"4.29.1","shortVersion":"4.29.1","platform":"web","vendor":"web","appName":"ttm","isIOS":false,"isAndroid":false,"isTiger":false,"isTHS":false,"isWeiXin":false,"isWeiXinMini":false,"isWeiBo":false,"isQQ":false,"isBaiduSwan":false,"isBaiduBox":false,"isDingTalk":false,"isToutiao":false,"isOnePlus":false,"isHuaWei":false,"isXiaomi":false,"isXiaomiWebView":false,"isOppo":false,"isVivo":false,"isSamsung":false,"isMobile":false},"href":"/m/news/2481202902"}