NOW Inc (DNOW) Reports Resilient Q3 2023 Earnings, Best Year-to-Date Since Going Public
NOW Inc (NYSE:DNOW) reported Q3 2023 earnings with strong gross margins and increased product sales.
The company's total liquidity stands at $547 million, with a debt-free balance sheet.
Revenue for Q3 2023 stood at $588 million, up from $577 million in Q2 2023.
Net income attributable to NOW Inc. was $35 million, down from $40 million in Q2 2023.
On November 2, 2023, NOW Inc (NYSE:DNOW) announced its third-quarter earnings for the period ending September 30, 2023. The company reported resilient earnings, marking its best year-to-date performance since becoming a public company.
Company Performance and Financial Highlights
David Cherechinsky, President and CEO of DNOW, commented on the company's performance, stating,
We are excited that our third-quarter earnings proved resilient and produced our best year-to-date earnings since becoming a public company. Our gross margins remain strong as we optimize product mix and proactively manage our pipe product lines."
He further highlighted the company's strong financial position, with a debt-free balance sheet and $547 million of total liquidity.
Income Statement Summary
The company's revenue for Q3 2023 stood at $588 million, up from $577 million in Q2 2023. The net income attributable to NOW Inc. was $35 million, down from $40 million in Q2 2023. Earnings per share attributable to NOW Inc. stockholders were $0.32, down from $0.35 in Q2 2023.
Balance Sheet Overview
As of September 30, 2023, the company's total assets were $1.376 billion, up from $1.320 billion as of December 31, 2022. Total liabilities stood at $469 million, down from $476 million as of December 31, 2022. NOW Inc. stockholders' equity was $904 million, up from $842 million as of December 31, 2022.
Looking Ahead
Cherechinsky expressed optimism about the company's future, stating,
We believe the U.S. market will resume a growth path next year as customers reset their budgets and energy evolution projects accelerate. In an environment of strong oil prices, which are averaging near $80 over the last twelve months, we see support for growth in 2024."
Overall, NOW Inc (NYSE:DNOW) has demonstrated a strong financial performance in Q3 2023, with resilient earnings and a strong balance sheet. The company's focus on optimizing product mix and managing pipe product lines has contributed to its robust gross margins, setting a positive tone for future growth.
Explore the complete 8-K earnings release (here) from NOW Inc for further details.
This article first appeared on GuruFocus.
