Overview

* DNOW ( DNOW ) Q3 revenue was $634 mln, missing analyst expectations

* Adjusted EPS for Q3 beats analyst expectations

Outlook

* DNOW expects to close merger with MRC Global in Q4 2025

* Company forecasts best full-year earnings ever in terms of EBITDA

* DNOW ( DNOW ) focuses on customer service and innovation for future growth

Result Drivers

* REVENUE GROWTH - DNOW achieved its highest revenue since Q4 2019, driven by strong operational performance

* STRONG CASH POSITION - DNOW ( DNOW ) ended the quarter with $266 mln in cash and zero debt, providing a solid foundation for growth

Key Details

Metric Beat/Mis Actual Consensu

s s

Estimate

Q3 Miss $634 mln $637.13

Revenue mln (3

Analysts

)

Q3 Beat $0.26 $0.23 (3

Adjusted Analysts

EPS )

Q3 $28 mln

Adjusted

Net

Income

Q3 Net $25 mln

Income

Q3 $51 mln

Adjusted

EBITDA

Analyst Coverage

* The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 1 "strong buy" or "buy", 1 "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 ( DNOW ) is $17.00, about 14.1% above its November 4 closing price of $14.60

* The stock recently traded at 16 times the next 12-month earnings vs. a P/E of 17 three months ago

Press Release:

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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.)