DNOW Inc., a key supplier of energy and industrial solutions, products, and specially engineered equipment packages, saw its stocks rise over 21% on Thursday morning. This dramatic increase has been attributed to better than expected quarterly results.
DNOW's net income for the fourth quarter experienced a significant jump, reaching $147 million or $1.35 per share. This contrasts sharply with the $32 million or $0.28 per share reported the previous year. The net income included a non-cash deferred tax benefit of $126 million.
Once specific items are excluded, earnings reached $24 million or $0.22 per share, surpassing the expected $0.16 per share predicted by analysts surveyed by Thomson-Reuters.
Quarterly revenue also increased from $547 million to $555 million, outperforming the anticipated $540.82 million.
DNOW's President and CEO, David Cherechinsky, remarked, "In addition to our significant top-line increase, we generated $171 million in free cash flow, more than double our initial guidance from February last year. For 2024, we aim to generate $150 million."
Currently, DNOW's stocks stand at $11.91. Over the past year, they have fluctuated between $8.83 and $14.57.
