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DNOW (DNOW) International Revenue Performance Explored
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Have you assessed how the international operations of DNOW (DNOW - Free Report) performed in the quarter ended March 2024? For this energy and industrial distribution company, possessing an expansive global footprint, parsing the trends of international revenues could be critical to gauge its financial resilience and growth prospects.
In the current global economy, which is more interconnected than ever, a company's success in penetrating international markets is crucial for its financial health and growth journey. Investors must understand a company's dependence on overseas markets, as this offers a window into the company's earnings stability, its ability to benefit from varied economic cycles and its potential for long-term growth.
International market involvement serves as insurance against economic downturns at home and enables engagement with economies that are growing more quickly. Still, this move toward diversification is not without its challenges, as it involves navigating through the fluctuations of currencies, geopolitical threats, and the distinctive nature of various markets.
Upon examining DNOW's recent quarterly performance, we noticed several interesting patterns in the revenue generated from its international segments, which are commonly analyzed and observed by Wall Street experts.
For the quarter, the company's total revenue amounted to $563 million, experiencing a decline of 3.6% year over year. Next, we'll explore the breakdown of DNOW's international revenue to understand the importance of its overseas business operations.
A Look into DNOW's International Revenue Streams
Of the total revenue, $66 million came from Canada during the last fiscal quarter, accounting for 11.7%. This represented a surprise of -6.91% as analysts had expected the region to contribute $70.9 million to the total revenue. In comparison, the region contributed $65 million, or 11.7%, and $83 million, or 14.2%, to total revenue in the previous and year-ago quarters, respectively.
During the quarter, International contributed $62 million in revenue, making up 11.0% of the total revenue. When compared to the consensus estimate of $78.2 million, this meant a surprise of -20.72%. Looking back, International contributed $72 million, or 13%, in the previous quarter, and $74 million, or 12.7%, in the same quarter of the previous year.
Prospective Revenues in International Markets
Wall Street analysts expect DNOW to report $638 million in total revenue for the current fiscal quarter, indicating an increase of 7.4% from the year-ago quarter. Canada and International are expected to contribute 10.3% ($65.7 million) and 12% ($76.3 million) to the total revenue, respectively.
For the full year, the company is projected to achieve a total revenue of $2.48 billion, which signifies a rise of 6.9% from the last year. The share of this revenue from various regions is expected to be: Canada at 11.3% ($279.6 million) and International at 12.5% ($310 million).
Key Takeaways
DNOW's leaning on foreign markets for its revenue stream presents a mix of chances and challenges. Therefore, a vigilant watch on its international revenue movements can greatly aid in projecting the company's future direction.
In an era of growing international ties and escalating geopolitical disputes, financial analysts on Wall Street pay keen attention to these developments to fine-tune their earnings estimations for businesses operating across borders. It's important to note, however, that a range of additional variables, like a company's local market status, also play a crucial role in shaping these forecasts.
At Zacks, we place significant importance on a company's evolving earnings outlook. This is based on empirical evidence demonstrating its strong influence on a stock's short -term price movements. Invariably, there exists a positive relationship -- an upward revision in earnings estimates is typically mirrored by a rise in the stock price.
Our proprietary stock rating tool, the Zacks Rank, with its externally validated exceptional track record, harnesses the power of earnings estimate revisions to serve as a dependable measure for anticipating the short-term price trends of stocks.
Over the preceding four weeks, the stock's value has diminished by 8%, against an upturn of 2.5% in the Zacks S&P 500 composite. In parallel, the Zacks Industrial Products sector, which counts DNOW among its entities, has appreciated by 1.5%. Over the past three months, the company's shares have seen an increase of 8.3% versus the S&P 500's 5.3% increase. The sector overall has witnessed an increase of 7.2% over the same period.
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DNOW (DNOW) International Revenue Performance Explored
Have you assessed how the international operations of DNOW (DNOW - Free Report) performed in the quarter ended March 2024? For this energy and industrial distribution company, possessing an expansive global footprint, parsing the trends of international revenues could be critical to gauge its financial resilience and growth prospects.
In the current global economy, which is more interconnected than ever, a company's success in penetrating international markets is crucial for its financial health and growth journey. Investors must understand a company's dependence on overseas markets, as this offers a window into the company's earnings stability, its ability to benefit from varied economic cycles and its potential for long-term growth.
International market involvement serves as insurance against economic downturns at home and enables engagement with economies that are growing more quickly. Still, this move toward diversification is not without its challenges, as it involves navigating through the fluctuations of currencies, geopolitical threats, and the distinctive nature of various markets.
Upon examining DNOW's recent quarterly performance, we noticed several interesting patterns in the revenue generated from its international segments, which are commonly analyzed and observed by Wall Street experts.
For the quarter, the company's total revenue amounted to $563 million, experiencing a decline of 3.6% year over year. Next, we'll explore the breakdown of DNOW's international revenue to understand the importance of its overseas business operations.
A Look into DNOW's International Revenue Streams
Of the total revenue, $66 million came from Canada during the last fiscal quarter, accounting for 11.7%. This represented a surprise of -6.91% as analysts had expected the region to contribute $70.9 million to the total revenue. In comparison, the region contributed $65 million, or 11.7%, and $83 million, or 14.2%, to total revenue in the previous and year-ago quarters, respectively.
During the quarter, International contributed $62 million in revenue, making up 11.0% of the total revenue. When compared to the consensus estimate of $78.2 million, this meant a surprise of -20.72%. Looking back, International contributed $72 million, or 13%, in the previous quarter, and $74 million, or 12.7%, in the same quarter of the previous year.
Prospective Revenues in International Markets
Wall Street analysts expect DNOW to report $638 million in total revenue for the current fiscal quarter, indicating an increase of 7.4% from the year-ago quarter. Canada and International are expected to contribute 10.3% ($65.7 million) and 12% ($76.3 million) to the total revenue, respectively.
For the full year, the company is projected to achieve a total revenue of $2.48 billion, which signifies a rise of 6.9% from the last year. The share of this revenue from various regions is expected to be: Canada at 11.3% ($279.6 million) and International at 12.5% ($310 million).
Key Takeaways
DNOW's leaning on foreign markets for its revenue stream presents a mix of chances and challenges. Therefore, a vigilant watch on its international revenue movements can greatly aid in projecting the company's future direction.
In an era of growing international ties and escalating geopolitical disputes, financial analysts on Wall Street pay keen attention to these developments to fine-tune their earnings estimations for businesses operating across borders. It's important to note, however, that a range of additional variables, like a company's local market status, also play a crucial role in shaping these forecasts.
At Zacks, we place significant importance on a company's evolving earnings outlook. This is based on empirical evidence demonstrating its strong influence on a stock's short -term price movements. Invariably, there exists a positive relationship -- an upward revision in earnings estimates is typically mirrored by a rise in the stock price.
Our proprietary stock rating tool, the Zacks Rank, with its externally validated exceptional track record, harnesses the power of earnings estimate revisions to serve as a dependable measure for anticipating the short-term price trends of stocks.
At present, DNOW holds a Zacks Rank #2 (Buy). This ranking implies that its near-term performance might beat the overall market movement. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
DNOW's Recent Stock Market Performance
Over the preceding four weeks, the stock's value has diminished by 8%, against an upturn of 2.5% in the Zacks S&P 500 composite. In parallel, the Zacks Industrial Products sector, which counts DNOW among its entities, has appreciated by 1.5%. Over the past three months, the company's shares have seen an increase of 8.3% versus the S&P 500's 5.3% increase. The sector overall has witnessed an increase of 7.2% over the same period.