DNOW Q1 EPS Falls to $0.01, Misses Estimate as Costs Rise
DNOW reported Q1 EPS of $0.01, missing the $0.05 consensus and plunging from $0.22 a year earlier. Revenues rose year-over-year, but higher operating costs and expenses compressed profitability.
1. Q1 Earnings and Revenue Results
DNOW delivered first-quarter EPS of $0.01, missing the consensus estimate of $0.05 and down sharply from $0.22 per share a year earlier. The company reported a year-over-year increase in revenues, driven by higher sales volumes across its distribution network, although exact revenue figures were not disclosed.
2. Cost Pressures Squeeze Profitability
Despite top-line growth, DNOW faced rising costs and operating expenses that eroded margins in the quarter. Increases in freight, labor and inventory carrying costs were cited as primary factors pressuring profitability, offsetting revenue gains.