NYSE$DNOW

DNOW Inc · Q4 2023 earnings

Q4 2023 earnings · · Investor relations

Briefing

DNOW Inc. reported strong Q4 2023 results, driven by revenue growth and effective cost management.

DNOW Inc. reported Q4 2023 revenue of $555 million and net income of $147 million, or $1.35 per diluted share. Non-GAAP net income was $24 million, or $0.22 per diluted share. The company's cash and cash equivalents were $299 million at the end of the quarter.

  • Revenue for the fourth quarter of 2023 was $555 million.
  • Net income attributable to DNOW Inc. for the fourth quarter of 2023 was $147 million, or $1.35 per diluted share, including a non-cash deferred tax benefit of $126 million.
  • Non-GAAP net income attributable to DNOW Inc. for the fourth quarter of 2023 was $24 million, or $0.22 per diluted share.
  • Cash provided by operating activities was $105 million for the fourth quarter of 2023.

Headline financials

Total Revenue

$555M

Previous: $547M+1.5%
EPS (adj)

$0.22

Previous: $0.25-12.0%
Capital Expenditures

-$2M

Previous: $2M-200.0%
Net Income

$147M

Previous: $32M+359.4%
Operating Income

$34M

Previous: $35M-2.9%
Gross Profit

$130M

Previous: $132M-1.5%
Stock-Based Comp

$4M

Previous: $4M+0.0%

Revenue & EPS history

NOW · Revenue · Quarterly

$555M

Q4 2023+1.5%vs Q4 2022
Beat estimate in 10 of 15 quarters(67%)
ActualEstimate

Forward guidance

DNOW is targeting to generate $150 million in free cash flow in 2024 and expects the acquisition of Whitco Supply to enhance earnings, free cash flow and shareholder value.

Tailwinds

  • Targeting $150 million in free cash flow in 2024.
  • Acquisition of Whitco Supply expected to enhance earnings.
  • Acquisition of Whitco Supply expected to enhance free cash flow.
  • Acquisition of Whitco Supply expected to enhance shareholder value.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q4 2023

Historical avgQ4 2023

+0.5%

Avg return

Earnings day

+1.0%

Avg return

5 days after

-0.8%

Avg return

30 days after

46%

23 / 50 earnings

Positive

+23.8%

Q4 2023

Best reaction

-19.2%

Q4 2025

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026-3.3%-1.0%-2.1%
Q4 2025-19.2%-28.6%-29.4%
Q3 2025-0.3%-10.1%-4.5%
Q1 2025-8.4%-5.6%-8.0%
Q4 2024+20.1%+24.4%+5.4%
Q3 2024+3.6%+8.4%+6.4%
Q2 2024-8.8%-11.3%-14.4%
Q1 2024-7.3%-6.3%-9.2%
Q4 2023+23.8%+29.1%+47.1%
Q3 2023-3.2%-7.3%-8.9%
Q2 2023-10.0%-5.1%+2.1%
Q1 2023-8.0%-9.1%-6.3%
Q4 2022-6.9%-11.0%-27.9%
Q3 2022-2.5%-1.4%-0.5%
Q2 2022+1.7%+1.4%+5.9%
Q1 2022-6.0%-18.4%-1.8%
Q4 2021-1.2%-1.9%+3.1%
Q3 2021+20.0%+24.7%+11.0%
Q2 2021-17.8%-20.0%-21.7%
Q1 2021+11.2%+11.4%+9.1%
Q4 2020-6.6%-2.8%-1.2%
Q3 2020+4.6%+19.3%+35.4%
Q2 2020+3.9%+7.5%-16.4%
Q1 2020-3.3%+5.2%+45.0%
Q4 2019+0.8%-7.9%-41.0%
Q3 2019+12.3%+12.5%+2.9%
Q2 2019+3.8%+5.9%+4.0%
Q1 2019+8.9%+2.4%-8.6%
Q4 2018+10.5%+12.0%-0.1%
Q3 2018+16.4%+24.1%+5.1%
Q2 2018+17.7%+18.1%+16.9%
Q1 2018+13.2%+16.2%+12.9%
Q4 2017+5.0%+0.0%+7.0%
Q3 2017-11.5%-8.8%-15.4%
Q2 2017-16.2%-16.9%-24.7%
Q1 2017-2.8%+0.3%-1.0%
Q4 2016-9.0%-10.2%-25.8%
Q3 2016-16.4%-16.4%+2.9%
Q2 2016+10.1%+15.0%+14.6%
Q1 2016-1.2%
Q4 2015+7.7%
Q3 2015+4.1%
Q2 2015+9.5%
Q1 2015+2.1%
Q4 2012-4.9%
Q4 2014-4.1%
Q3 2013-0.3%
Q3 2014-1.9%
Q2 2013+2.2%
Q2 2014-8.1%
Q1 2014
Q4 2013
Q1 2013

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