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Energy and industrial distributor DistributionNOW (NYSE:DNOW) will be announcing earnings results tomorrow before market open. Here’s what investors should know.
DistributionNOW beat analysts’ revenue expectations by 3.4% last quarter, reporting revenues of $571 million, up 2.9% year on year. It was an incredible quarter for the company, with an impressive beat of analysts’ EPS estimates and a solid beat of analysts’ EBITDA estimates.
Is DistributionNOW a buy or sell going into earnings? Read our full analysis here, it’s free.
This quarter, analysts are expecting DistributionNOW’s revenue to grow 4.4% year on year to $587.8 million, a reversal from the 3.6% decrease it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.17 per share.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. DistributionNOW has missed Wall Street’s revenue estimates four times over the last two years.
Looking at DistributionNOW’s peers in the industrial distributors segment, some have already reported their Q1 results, giving us a hint as to what we can expect. Watsco’s revenues decreased 2.2% year on year, missing analysts’ expectations by 7.3%, and Global Industrial reported flat revenue, topping estimates by 4.6%. Watsco traded down 10.1% following the results while Global Industrial was up 15.7%.
Read our full analysis of Watsco’s results here and Global Industrial’s results here.
There has been positive sentiment among investors in the industrial distributors segment, with share prices up 12.3% on average over the last month. DistributionNOW is up 11.4% during the same time and is heading into earnings with an average analyst price target of $19 (compared to the current share price of $16.07).
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