Equity Profile

DNOW

DNOW Inc.

IndustrialsTrading Companies & Distributors$2.9B

Aug5Wed

Pre-Earnings Brief

UpcomingQ2-2026Pre-Market9:00 AM EDT

Company Snapshot

DNOW Inc. is a trading company and distributor in the industrial sector, focusing on providing products and services to the energy and industrial markets....

Key Metrics to Watch

Earnings Per Share (EPS)

EPS is a key indicator of the company's profitability and will help assess whether DNOW is improving its financial performance.

$0.09

Revenue

Revenue figures provide insight into the company's sales performance and overall market demand for its products.

$1.3B

Wall Street expectations, options signals, track record, and call prep available with Pro.

DNOW Q2-2026 Earnings Preview

Context

Company Snapshot

DNOW Inc. is a trading company and distributor in the industrial sector, focusing on providing products and services to the energy and industrial markets. With a market cap of $3 billion, the company plays a crucial role in supporting infrastructure and energy projects, which are vital for economic growth and development.

Earnings Scorecard·Last 8Q

EPS Beat Streak

EPS Beat Rate

75%

Avg EPS Surprise

+16.29%

Avg Stock Reaction

-2.90%

Last Quarter Recap

In Q1 2026, DNOW reported an EPS of $0.01, significantly missing the expected $0.04. This disappointing performance led to a 3.33% drop in stock price the following day.

Management Promises & Guidance

Expectations

Wall Street Expectations

Analysts are cautiously optimistic about DNOW's upcoming earnings, expecting a slight recovery in EPS and stable revenue. However, the company has struggled with recent performance, leading to mixed sentiments.

Bull Case

If DNOW meets or exceeds the EPS estimate of $0.09, it could signal a turnaround in profitability, boosting investor confidence and potentially driving the stock price higher.

Bear Case

Conversely, if the company misses expectations again, it may raise concerns about its operational efficiency and market demand, leading to further declines in stock price.

Key Metrics to Watch

Earnings Per Share (EPS)

$0.09

EPS is a key indicator of the company's profitability and will help assess whether DNOW is improving its financial performance.

Revenue

$1.3B

Revenue figures provide insight into the company's sales performance and overall market demand for its products.

Expectations

Two Questions That Matter

The print will turn on these two things.

Will DNOW achieve an EPS of $0.09 or better?

This EPS figure is crucial for assessing the company's recovery and operational efficiency after a disappointing last quarter.

What are the revenue figures for this quarter?

Revenue is a key indicator of market demand and sales performance, which will be closely scrutinized by investors.

Edge

What the Street Is Missing

Why consensus could be wrong

The consensus may underestimate DNOW's ability to recover from recent performance issues, as the company could benefit from improved market conditions.

Supporting Evidence

The options market is pricing a significant move, suggesting investors are anticipating volatility that may not align with the consensus.

DNOW has a history of surprising analysts, with a 75% EPS beat rate in recent quarters, indicating potential for a positive surprise.

The stock's recent performance may not fully reflect underlying demand trends in the industrial sector.

Key Risk

If DNOW's revenue exceeds $1.3 billion, it could challenge the current bearish sentiment and shift market expectations.

Edge

Thesis-Break Levels

Pre-commit to what would confirm each case.

The market is debating whether DNOW can turn around its recent performance, with EPS and revenue figures being critical indicators.

Bull Confirmed If

Achieving an EPS of $0.09 or higher would confirm the bull case and indicate a positive trend in profitability.

Bear Confirmed If

An EPS below $0.07 would validate concerns about the company's ongoing struggles and operational challenges.

Pre-Earnings Positioning

Options Market

Implied Move

±7.71%

Historical Avg

±7.9%

In line with history

The options market is pricing in a significant move around the earnings announcement, indicating uncertainty among investors.

Options are pricing ±7.7% while DNOW has averaged ±7.9% over the last 8 prints — setup is roughly in line with history.

Detail

ATM IV

0.4%

30d HV

25.7%

Calls (8K)P/C Ratio: 0.24Puts (300)

Preparation

Post-Print Playbook

Likely market behavior by outcome — not investment advice.

Beat & Raise

If DNOW beats expectations, history suggests the stock could see a modest increase, confirming a positive trend in profitability.

In-Line / Cautious

If results are in line with expectations, the stock may experience limited movement as investors await further guidance.

Miss

A miss could lead to a decline in stock price, with history indicating an average drop of around 3.87% following such outcomes.

Earnings Track Record

Preparation

What to Listen For

Call Prep

1Any updates on market demand for industrial products.
2Management's commentary on cost management and operational efficiency.
3Insights into customer order trends and backlog.
4Any strategic initiatives or partnerships announced.
5Guidance on future quarters and expected challenges.

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Company Snapshot

DNOW Inc. is a trading company and distributor in the industrial sector, focusing on providing products and services to the energy and industrial markets....

Key Metrics to Watch

Earnings Per Share (EPS)

EPS is a key indicator of the company's profitability and will help assess whether DNOW is improving its financial performance.

$0.09

Revenue

Revenue figures provide insight into the company's sales performance and overall market demand for its products.

$1.3B

Wall Street expectations, options signals, track record, and call prep available with Pro.

DNOW Q2-2026 Earnings Preview

Context

Company Snapshot

Earnings Scorecard·Last 8Q

EPS Beat Streak

EPS Beat Rate

75%

Avg EPS Surprise

+16.29%

Avg Stock Reaction

-2.90%

Last Quarter Recap

In Q1 2026, DNOW reported an EPS of $0.01, significantly missing the expected $0.04. This disappointing performance led to a 3.33% drop in stock price the following day.

Management Promises & Guidance

Expectations

Wall Street Expectations

Bull Case

If DNOW meets or exceeds the EPS estimate of $0.09, it could signal a turnaround in profitability, boosting investor confidence and potentially driving the stock price higher.

Bear Case

Conversely, if the company misses expectations again, it may raise concerns about its operational efficiency and market demand, leading to further declines in stock price.

Key Metrics to Watch

Earnings Per Share (EPS)

$0.09

EPS is a key indicator of the company's profitability and will help assess whether DNOW is improving its financial performance.

Revenue

$1.3B

Revenue figures provide insight into the company's sales performance and overall market demand for its products.

Expectations

Two Questions That Matter

The print will turn on these two things.

Will DNOW achieve an EPS of $0.09 or better?

This EPS figure is crucial for assessing the company's recovery and operational efficiency after a disappointing last quarter.

What are the revenue figures for this quarter?

Revenue is a key indicator of market demand and sales performance, which will be closely scrutinized by investors.

Edge

What the Street Is Missing

Why consensus could be wrong

The consensus may underestimate DNOW's ability to recover from recent performance issues, as the company could benefit from improved market conditions.

Supporting Evidence

The options market is pricing a significant move, suggesting investors are anticipating volatility that may not align with the consensus.

DNOW has a history of surprising analysts, with a 75% EPS beat rate in recent quarters, indicating potential for a positive surprise.

The stock's recent performance may not fully reflect underlying demand trends in the industrial sector.

Key Risk

If DNOW's revenue exceeds $1.3 billion, it could challenge the current bearish sentiment and shift market expectations.

Edge

Thesis-Break Levels

Pre-commit to what would confirm each case.

The market is debating whether DNOW can turn around its recent performance, with EPS and revenue figures being critical indicators.

Bull Confirmed If

Achieving an EPS of $0.09 or higher would confirm the bull case and indicate a positive trend in profitability.

Bear Confirmed If

An EPS below $0.07 would validate concerns about the company's ongoing struggles and operational challenges.

Pre-Earnings Positioning

Options Market

Implied Move

±7.71%

Historical Avg

±7.9%

In line with history

The options market is pricing in a significant move around the earnings announcement, indicating uncertainty among investors.

Options are pricing ±7.7% while DNOW has averaged ±7.9% over the last 8 prints — setup is roughly in line with history.

Detail

ATM IV

0.4%

30d HV

25.7%

Calls (8K)P/C Ratio: 0.24Puts (300)

Preparation

Post-Print Playbook

Likely market behavior by outcome — not investment advice.

Beat & Raise

If DNOW beats expectations, history suggests the stock could see a modest increase, confirming a positive trend in profitability.

In-Line / Cautious

If results are in line with expectations, the stock may experience limited movement as investors await further guidance.

Miss

A miss could lead to a decline in stock price, with history indicating an average drop of around 3.87% following such outcomes.

Earnings Track Record

Preparation

What to Listen For

Call Prep

1Any updates on market demand for industrial products.
2Management's commentary on cost management and operational efficiency.
3Insights into customer order trends and backlog.
4Any strategic initiatives or partnerships announced.
5Guidance on future quarters and expected challenges.