DNOW - Why DNOW Stock Is Surging Higher Today
2024-02-15 15:14:00 ET
DNOW (NYSE: DNOW) easily beat analyst expectations and generated a lot more cash than the company had originally predicted. Investors are cheering the results, sending shares of the industrial-products company up 19% as of 2:30 p.m. ET.
DNOW is a supplier of equipment and services to energy and industrial markets. It offers a wide range of air compressors, welding equipment, power generation equipment, and pumps. The company was spun off from what was then known as National Oilwell Varco (now NOV ) in 2014 and has used a series of acquisitions in the years since then to build its product portfolio.
The company's most recent quarter should put it on a lot of radar screens. DNOW earned $0.22 per share on revenue of $555 million, easily surpassing Wall Street estimates of $0.16 per share on $540 million in sales. It also generated $171 million in free cash flow for the year, more than twice the amount it guided for in February 2023.
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Why DNOW Stock Is Surging Higher Today