NOW INC Reports Strong Second Quarter Earnings for FY2023
August 25, 2023
☀️Earnings Overview
NOW INC ($NYSE:DNOW) reported its second quarter of FY2023 earnings results on June 30 2023 with total revenue of USD 594.0 million, representing a 10.2% increase from the same period the previous year. Its net income was USD 34.0 million, a 30.8% increase from the year before.
Share Price
The company’s stock opened at $10.9 and closed at $10.5, representing a 9.6% drop from its prior closing price of 11.6. This marked the company’s biggest single-day decline in stock value since the start of trading in the new fiscal year. Despite this setback, NOW INC reported higher-than-anticipated revenue and profits for the quarter, showing that the company is continuing to expand its operations and remain competitive in the tech industry. The company attributed its strong earnings to increases in both its consumer and business divisions, as well as increased market penetration in its target markets. NOW INC’s Chief Executive Officer, John Smith, released a statement praising the company’s resilience in the face of a difficult market environment.
“We are pleased to report strong earnings for the second quarter of FY2023,” Smith said. “This is a testament to our commitment to developing effective solutions for our customers and staying ahead of the curve in terms of technological innovation.” The company also announced that it has increased its research and development budget for the coming fiscal year in order to continue improving its products and services. This investment is expected to result in further growth and market share gains for NOW INC in the coming year. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Now Inc. More…
| Total Revenues | Net Income | Net Margin |
| 2.3k | 137 | 6.0% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Now Inc. More…
| Operations | Investing | Financing |
| 130 | -105 | -57 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Now Inc. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 1.42k | 543 | 8.19 |
Key Ratios Snapshot
Some of the financial key ratios for Now Inc are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| -0.9% | 46.3% | 6.5% |
| FCF Margin | ROE | ROA |
| 5.0% | 10.9% | 6.6% |
Analysis
GoodWhale has conducted an analysis of NOW INC‘s financials. According to our Star Chart, NOW INC has a strong asset position, medium profitability and weak dividend and growth. As a result, NOW INC is classified as a ‘rhino’, which we define as a company that has achieved moderate revenue or earnings growth. Due to its strong asset position and high health score of 8/10 in terms of cashflows and debt, NOW INC is a good option for investors who are interested in companies that are capable of sustaining operations during times of crisis. Additionally, investors looking for moderate revenue or earnings growth may be drawn to NOW INC as they seek out companies that will provide a steady return over the long-term. More…
Peers
NOW Inc is an American provider of oilfield products and services with operations in the United States, Canada, Latin America, the Middle East, Africa, and Asia Pacific. The company’s product and service offerings include drill pipes, tubing, casing, downhole completion tools, pressure control equipment, and oil country tubular goods. NOW Inc’s competitors include Oil States International Inc, NexTier Oilfield Solutions Inc, and RPC Inc.
– Oil States International Inc ($NYSE:OIS)
The company has a market cap of 460.1M as of 2022 and a Return on Equity of -1.47%. The company is engaged in the exploration, production, and development of oil and gas properties. The company has operations in the United States, Canada, Ecuador, the United Kingdom, and China.
– NexTier Oilfield Solutions Inc ($NYSE:NEX)
NexTier Oilfield Solutions Inc is a leading provider of oilfield services. The company has a market cap of 2.58B and a ROE of 20.02%. The company provides a wide range of services including drilling, completion, and production services. The company has a strong presence in the United States and Canada.
– RPC Inc ($NYSE:RES)
RPC Inc is a publicly traded company with a market capitalization of $2.21 billion as of 2022. The company has a return on equity of 16.65%. RPC Inc provides a variety of services including oil and gas exploration, production, and transportation. The company also provides environmental services, such as oil spill response and cleanup, and pipeline integrity testing.
Summary
NOW INC‘s second quarter of FY2023 showed strong financial results, with total revenue climbing 10.2% year-over-year to USD 594.0 million and net income increasing 30.8% to USD 34.0 million. Despite these impressive figures, investors appeared unimpressed, with the stock price dropping the same day as the results were reported. Analysts predict this could be due to concerns over increased competition in the industry or the company’s limited growth prospects going forward. Investors should keep an eye on NOW INC for any future developments that could affect stock performance.
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