Overview

• U.S. energy distributor's Q1 revenue beat analyst expectations

• Adjusted EPS for Q1 missed analyst expectations

• Company repurchased $50 mln in stock and acquired Edge Controls for $46 mln

Outlook

• Company did not provide specific guidance for upcoming quarters or full-year results in press release

Result Drivers

• MIDSTREAM AND GAS UTILITY GROWTH - Co said sequential revenue growth was delivered in midstream and gas utility sectors

• INTEGRATION AND SYNERGIES - Co said integration of MRC Global is advancing and synergies are being captured ahead of schedule

Company press release: ID:nBw18nGq0a

Key Details

Metric	Beat/Miss	Actual	Consensus Estimate
Q1 Revenue	Beat	$1.18 bln	$1.08 bln (4 Analysts)
Q1 Adjusted EPS	Miss	$0.01	$0.08 (4 Analysts)
Q1 Adjusted Net Income		$3 mln
Q1 Net Income		-$44 mln
Q1 Adjusted EBITDA		$39 mln

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 3 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"

• Wall Street's median 12-month price target for DNOW Inc is $16.00, about 18.5% above its May 6 closing price of $13.50

• The stock recently traded at 18 times the next 12-month earnings vs. a P/E of 14 three months ago

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