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Investing in DNOW (DNOW)? Don't Miss Assessing Its International Revenue Trends
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Have you assessed how the international operations of DNOW (DNOW - Free Report) performed in the quarter ended June 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 today's increasingly interconnected global economy, a company's ability to tap into international markets can be a pivotal factor in shaping its overall financial health and growth trajectory. For investors, understanding a company's reliance on overseas markets has become increasingly crucial, as it offers insights into the company's sustainability of earnings, ability to tap into diverse economic cycles and overall growth potential.
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.
In our recent assessment of DNOW's quarterly performance, we discovered notable trends in its overseas revenue sections, which are typically modeled and scrutinized by Wall Street analysts.
For the quarter, the company's total revenue amounted to $633 million, experiencing an increase of 6.6% year over year. Next, we'll explore the breakdown of DNOW's international revenue to understand the importance of its overseas business operations.
A Closer Look at DNOW's Revenue Streams Abroad
During the quarter, Canada contributed $56 million in revenue, making up 8.9% of the total revenue. When compared to the consensus estimate of $58.2 million, this meant a surprise of -3.78%. Looking back, Canada contributed $66 million, or 11.7%, in the previous quarter, and $66 million, or 11.1%, in the same quarter of the previous year.
Of the total revenue, $65 million came from International during the last fiscal quarter, accounting for 10.3%. This represented a surprise of -7.54% as analysts had expected the region to contribute $70.3 million to the total revenue. In comparison, the region contributed $62 million, or 11%, and $72 million, or 12.1%, to total revenue in the previous and year-ago quarters, respectively.
Revenue Projections for Overseas Markets
For the current fiscal quarter, it is anticipated by Wall Street analysts that DNOW will report a total revenue of $606.9 million, which reflects an increase of 3.2% from the same quarter in the previous year. The revenue contributions are expected to be 10.4% from Canada ($63.3 million) and 11.8% from International ($71.6 million).
For the full year, the company is projected to achieve a total revenue of $2.36 billion, which signifies a rise of 1.5% from the last year. The share of this revenue from various regions is expected to be: Canada at 10.6% ($249 million) and International at 11.7% ($275.8 million).
In Conclusion
The dependency of DNOW on global markets for its revenues presents a mix of potential gains and hazards. Thus, monitoring the trends in its overseas revenues can be a key indicator for predicting the firm's future performance.
In an environment where global interconnections and geopolitical skirmishes are intensifying, Wall Street analysts keep a keen eye on these trends, particularly for firms with overseas operations, to adjust their earnings predictions. Moreover, a range of other aspects, including how a company fares in its home country, significantly affects these projections.
Emphasizing a company's shifting earnings prospects is a key aspect of our approach at Zacks, especially since research has proven its substantial influence on a stock's price in the short run. This correlation is positively aligned, meaning that improved earnings projections tend to boost the stock's price.
The Zacks Rank, our proprietary stock rating mechanism, demonstrates a notable performance history confirmed through external audits. It effectively utilizes the power of earnings estimate revisions to act as a predictor of a stock's price performance in the near term.
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Investing in DNOW (DNOW)? Don't Miss Assessing Its International Revenue Trends
Have you assessed how the international operations of DNOW (DNOW - Free Report) performed in the quarter ended June 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 today's increasingly interconnected global economy, a company's ability to tap into international markets can be a pivotal factor in shaping its overall financial health and growth trajectory. For investors, understanding a company's reliance on overseas markets has become increasingly crucial, as it offers insights into the company's sustainability of earnings, ability to tap into diverse economic cycles and overall growth potential.
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.
In our recent assessment of DNOW's quarterly performance, we discovered notable trends in its overseas revenue sections, which are typically modeled and scrutinized by Wall Street analysts.
For the quarter, the company's total revenue amounted to $633 million, experiencing an increase of 6.6% year over year. Next, we'll explore the breakdown of DNOW's international revenue to understand the importance of its overseas business operations.
A Closer Look at DNOW's Revenue Streams Abroad
During the quarter, Canada contributed $56 million in revenue, making up 8.9% of the total revenue. When compared to the consensus estimate of $58.2 million, this meant a surprise of -3.78%. Looking back, Canada contributed $66 million, or 11.7%, in the previous quarter, and $66 million, or 11.1%, in the same quarter of the previous year.
Of the total revenue, $65 million came from International during the last fiscal quarter, accounting for 10.3%. This represented a surprise of -7.54% as analysts had expected the region to contribute $70.3 million to the total revenue. In comparison, the region contributed $62 million, or 11%, and $72 million, or 12.1%, to total revenue in the previous and year-ago quarters, respectively.
Revenue Projections for Overseas Markets
For the current fiscal quarter, it is anticipated by Wall Street analysts that DNOW will report a total revenue of $606.9 million, which reflects an increase of 3.2% from the same quarter in the previous year. The revenue contributions are expected to be 10.4% from Canada ($63.3 million) and 11.8% from International ($71.6 million).For the full year, the company is projected to achieve a total revenue of $2.36 billion, which signifies a rise of 1.5% from the last year. The share of this revenue from various regions is expected to be: Canada at 10.6% ($249 million) and International at 11.7% ($275.8 million).
In Conclusion
The dependency of DNOW on global markets for its revenues presents a mix of potential gains and hazards. Thus, monitoring the trends in its overseas revenues can be a key indicator for predicting the firm's future performance.In an environment where global interconnections and geopolitical skirmishes are intensifying, Wall Street analysts keep a keen eye on these trends, particularly for firms with overseas operations, to adjust their earnings predictions. Moreover, a range of other aspects, including how a company fares in its home country, significantly affects these projections.
Emphasizing a company's shifting earnings prospects is a key aspect of our approach at Zacks, especially since research has proven its substantial influence on a stock's price in the short run. This correlation is positively aligned, meaning that improved earnings projections tend to boost the stock's price.
The Zacks Rank, our proprietary stock rating mechanism, demonstrates a notable performance history confirmed through external audits. It effectively utilizes the power of earnings estimate revisions to act as a predictor of a stock's price performance in the near term.
At the moment, DNOW has a Zacks Rank #5 (Strong Sell), signifying that it may underperform the overall market trend in the upcoming period. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
Exploring Recent Trends in DNOW's Stock Price