Energy and industrial distributor NOW Inc. (NYSE:DNOW) will be reporting results tomorrow before market open. Here’s what you need to know.
NOW met analysts’ revenue expectations last quarter, reporting revenues of $633 million, up 6.6% year on year. It was a very strong quarter for the company, with an impressive beat of analysts’ EBITDA estimates.
Is NOW a buy or sell going into earnings? Read our full analysis here, it’s free.
This quarter, analysts are expecting NOW’s revenue to grow 4.6% year on year to $614.9 million, improving from the 1.9% 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. NOW has missed Wall Street’s revenue estimates three times over the last two years.
Looking at NOW’s peers in the industrial distributors segment, some have already reported their Q3 results, giving us a hint as to what we can expect. MRC Global’s revenues decreased 10.2% year on year, meeting analysts’ expectations, and Watsco reported revenues up 1.6%, falling short of estimates by 3.6%. Watsco traded down 1.4% following the results.
Read our full analysis of MRC Global’s results here and Watsco’s results here.
There has been positive sentiment among investors in the industrial distributors segment, with share prices up 2.7% on average over the last month. NOW is down 2.3% during the same time and is heading into earnings with an average analyst price target of $15 (compared to the current share price of $12.15).
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