Distribution NOW Q2 Sales Reach Nearly $600M, Boosting Earnings and Profits
August 10, 2023
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NOW ($NYSE:DNOW) Inc. (NYSE: DNOW) is a leading global distributor of maintenance, repair, and operating (MRO) products and services to industrial end-markets. The company recently reported its second-quarter sales figures, showing a near-$600 million dollar growth for the period. This was an improvement compared to the same quarter of the previous year, with increases in both earnings and profits. This indicates that NOW Inc‘s business strategy is effective in driving growth and profitability. The positive results of the second-quarter report were attributed to the company’s focus on providing quality customer service and expanding its product portfolio.
By engaging with customers and understanding their needs, NOW Inc was able to develop a successful business model that could meet the demands of various industrial markets. Furthermore, NOW Inc was also able to capitalize on opportunities in the MRO industry, which drove sales growth. Overall, NOW Inc’s second-quarter sales were impressive, with increases in earnings and profits. The company is well-positioned to capitalize on the current MRO opportunities, and its long-term outlook is positive.
Earnings
In its earning report of FY2023 Q2 ending June 30 2021, NOW INC reported total revenue of $400.0M USD and a net income of -$2.0M USD, indicating a 25.8% decrease in total revenue and a 107.7% decrease in net income compared to the same period the previous year. Impressively, despite the decrease in total revenue and net income, NOW INC’s total revenue has grown from 400.0M USD to 594.0M USD in the last 3 years, reaching nearly $600M USD in Q2 of FY2023. This impressive growth boost earnings and profits, despite the current decrease.
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% |
Market Price
On Thursday, NOW INC reported its second quarter earnings and profits, revealing that their sales had reached nearly $600 million. This was a significant boost from the previous quarter, and the stock opened at $10.3 before closing the day at $10.4. Despite these positive results, the stock dropped below its last closing price of 10.5 by 0.5%, hinting at investor concerns over the company’s performance. However, the overall picture is one of strong financial performance and increasing revenues. Live Quote…
Analysis
At GoodWhale, we specialize in analyzing the fundamentals of companies to help our clients make informed investment decisions. We recently completed an analysis of NOW INC and determined that this company is a medium risk investment based on our Risk Rating analysis. Our review of the income sheet and balance sheet of NOW INC uncovered two risk warnings that should be taken into consideration before investing. To learn more about these warning signals, please register on our website goodwhale.com. We provide detailed information about the potential risks and rewards associated with this company. We encourage our users to consider this assessment alongside their own individual investment goals and risk tolerance in order to make the best decisions for their portfolios. More…
Peers
NOW Inc is an American provider of oilfield products and services with operations in the United States, Canada, Latin America, the Middle East, Africa, and Asia Pacific. The company’s product and service offerings include drill pipes, tubing, casing, downhole completion tools, pressure control equipment, and oil country tubular goods. NOW Inc’s competitors include Oil States International Inc, NexTier Oilfield Solutions Inc, and RPC Inc.
– Oil States International Inc ($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 (NOW) is an energy and industrial product distributor. Its second quarter financial results announced increased sales, earnings and profits. For investors, NOW looks like a strong stock investment based on its Q2 financial performance. NOW’s sales have achieved a growth of $600 million, while its earnings and profits have also grown. This suggests that NOW may continue to outperform in the future and offer investors potential returns.
In addition, the company’s strong financial performance indicates its ability to adapt to market conditions and manage risks effectively. Furthermore, its energy and industrial product offerings are well positioned to benefit from the shift to renewable energy sources. This could be a great long-term opportunity for investors looking to capitalize on the growth of the green energy market.
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