DNOW Inc. reported its financial results for the three and nine months ended September 30, 2024, showing a mixed performance in revenue and profitability compared to the same periods in 2023. Revenue for the third quarter reached $606 million, a 3.1% increase from $588 million in Q3 2023. For the nine months, revenue totaled $1,802 million, up 2.0% from $1,766 million in the prior year.
Despite the revenue growth, the company experienced a decline in profitability. Operating profit for Q3 2024 was $23 million, down from $37 million in Q3 2023, while for the nine months, it decreased to $84 million from $108 million. Net income for Q3 2024 was $13 million, significantly lower than $35 million in the same quarter of 2023. For the nine-month period, net income fell to $59 million from $101 million in 2023. This decline in profitability was attributed to increased costs, including a rise in the cost of products sold, which reached $471 million in Q3 2024, compared to $454 million in Q3 2023.
The company’s effective tax rate also saw a substantial increase, rising to 40.9% for Q3 2024 from 5.4% in the same period last year. This contributed to the lower net income figures. Additionally, DNOW recognized $8 million in restructuring charges in its International segment during Q3 2024, which included foreign currency translation losses and inventory write-downs.
In terms of strategic developments, DNOW completed the acquisition of Whitco Supply, LLC for $185 million, which resulted in recognized goodwill of $53 million and intangible assets of $30 million. The company also continued its share repurchase program, spending $7 million to repurchase 541,502 shares in Q3 2024, compared to $5 million for 429,622 shares in the same quarter of 2023.
As of September 30, 2024, DNOW reported total assets of $1,587 million, an increase from $1,529 million at the end of 2023. Stockholders' equity rose to $1,118 million from $1,063 million. Cash and cash equivalents decreased to $261 million from $299 million at the end of 2023, while net cash provided by operating activities increased significantly to $176 million from $83 million in the prior year.
Overall, DNOW Inc. navigated a challenging market environment, marked by rising costs and restructuring efforts, while still managing to grow its revenue and maintain a strong balance sheet.
About DNOW Inc.
About 10-Q Filings
A 10-Q form is an important financial report that public companies in the United States must submit every three months. It gives a clear picture of a company's financial health and recent performance.
Key points about the 10-Q:
- Frequency: Companies file it three times a year, covering the first three quarters. The fourth quarter is covered in a more comprehensive annual report.
-
Content: It includes:
- Financial statements showing the company's current financial position
- Updates from management on the performance and projections of the business
- Information about potential risks the company faces
- Details on how the company is run internally
- Deadline: Must be filed within 40 or 45 days after the quarter ends, depending on the size of the company.
Our Methodology
AssetRoom is committed to providing timely summaries of news from public companies. We use AI to generate these summaries quickly, but they are not reviewed by human experts.
Our method:
- Data Collection: We continuously monitor for new filings (currently limited to US-listed stocks).
- AI-Powered Analysis: Our advanced AI system processes each filing, identifying key information and extracting relevant data.
- Summary Generation: The AI creates a concise, easy-to-understand summary of the filing, highlighting the most important points.
- Publication: The summary is immediately published on our platform, allowing users instant access to the latest information.
- Email users: We distribute round-up emails according to our users preferences, keeping them in the loop with the companies they follow.
Feedback & Corrections
Spot an error or have a suggestion? Contact us.