Equity Profile

DNOW

DNOW Inc.

IndustrialsTrading Companies & Distributors$2.4B

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 investors gauge how well DNOW is managing costs and generating income.

N/A

Revenue Growth

Revenue growth will provide insight into the company's sales performance and demand for its products in the current economic environment.

N/A

1 more metrics, 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 $2 billion, the company plays a crucial role in the supply chain, especially as global demand for energy and industrial goods fluctuates.

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. The stock reacted negatively, dropping 3.33% the following day.

Management Promises & Guidance

Expectations

Wall Street Expectations

Overall, expectations for DNOW's upcoming earnings are cautious, especially after the recent earnings miss. Investors are looking for signs of recovery in profitability and revenue growth.

Bull Case

If DNOW can show improved EPS and revenue growth, it may signal a turnaround in performance, leading to increased investor confidence and stock price appreciation.

Bear Case

Conversely, if the company fails to meet expectations again, it could raise concerns about its ability to compete and manage costs, leading to further declines in stock value.

Expectations

Two Questions That Matter

The print will turn on these two things.

What will the EPS be for Q2-2026, and how does it compare to previous quarters?

Given the significant miss last quarter, investors will closely watch EPS to assess whether the company is on a recovery path.

What is the revenue growth outlook for the upcoming quarter?

Revenue growth is critical for DNOW's performance, and any signs of improvement will be key to restoring investor confidence.

Edge

What the Street Is Missing

Why consensus could be wrong

The Street may be underestimating DNOW's ability to rebound from its recent earnings miss, as historical data shows a strong EPS beat rate of 75%.

Supporting Evidence

The options market is pricing a 13.73% move, indicating expectations for volatility that may not align with the company's historical performance.

DNOW's previous earnings history shows that even with misses, the stock often stabilizes or recovers in subsequent quarters.

Key Risk

If DNOW reports an EPS significantly above $0.04, it could challenge the current cautious sentiment and shift investor perception.

Edge

Thesis-Break Levels

Pre-commit to what would confirm each case.

This quarter's performance is particularly important as it follows a significant earnings miss, and investors are looking for signs of improvement.

Bull Confirmed If

An EPS of $0.05 or higher would confirm the bull case, indicating a recovery in profitability.

Bear Confirmed If

An EPS below $0.01 would confirm the bear case, suggesting ongoing struggles in managing costs and generating income.

Pre-Earnings Positioning

Options Market

Implied Move

±13.73%

Historical Avg

±7.9%

In line with history

The options market is pricing in a significant move around the earnings report, indicating that investors expect volatility based on the results.

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 and raises guidance, history suggests a potential average stock move of +2.57%, confirming a positive turnaround.

In-Line / Cautious

If results are in line with expectations but lack strong guidance, the stock may see muted movement as investors remain cautious.

Miss

If DNOW misses again, history suggests a potential average stock move of -3.87%, indicating further concerns about the company's performance.

Earnings Track Record

Preparation

What to Listen For

Call Prep

1Any updates on cost management strategies and their impact on gross margins.
2Details on demand trends in the energy and industrial markets.
3Insights into any new product lines or services that could drive future revenue.
4Management's commentary on competitive positioning and market share.
5Any guidance on expected revenue growth for the upcoming quarters.

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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 investors gauge how well DNOW is managing costs and generating income.

N/A

Revenue Growth

Revenue growth will provide insight into the company's sales performance and demand for its products in the current economic environment.

N/A

1 more metrics, 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. The stock reacted negatively, dropping 3.33% the following day.

Management Promises & Guidance

Expectations

Wall Street Expectations

Overall, expectations for DNOW's upcoming earnings are cautious, especially after the recent earnings miss. Investors are looking for signs of recovery in profitability and revenue growth.

Bull Case

If DNOW can show improved EPS and revenue growth, it may signal a turnaround in performance, leading to increased investor confidence and stock price appreciation.

Bear Case

Conversely, if the company fails to meet expectations again, it could raise concerns about its ability to compete and manage costs, leading to further declines in stock value.

Expectations

Two Questions That Matter

The print will turn on these two things.

What will the EPS be for Q2-2026, and how does it compare to previous quarters?

Given the significant miss last quarter, investors will closely watch EPS to assess whether the company is on a recovery path.

What is the revenue growth outlook for the upcoming quarter?

Revenue growth is critical for DNOW's performance, and any signs of improvement will be key to restoring investor confidence.

Edge

What the Street Is Missing

Why consensus could be wrong

The Street may be underestimating DNOW's ability to rebound from its recent earnings miss, as historical data shows a strong EPS beat rate of 75%.

Supporting Evidence

The options market is pricing a 13.73% move, indicating expectations for volatility that may not align with the company's historical performance.

DNOW's previous earnings history shows that even with misses, the stock often stabilizes or recovers in subsequent quarters.

Key Risk

If DNOW reports an EPS significantly above $0.04, it could challenge the current cautious sentiment and shift investor perception.

Edge

Thesis-Break Levels

Pre-commit to what would confirm each case.

This quarter's performance is particularly important as it follows a significant earnings miss, and investors are looking for signs of improvement.

Bull Confirmed If

An EPS of $0.05 or higher would confirm the bull case, indicating a recovery in profitability.

Bear Confirmed If

An EPS below $0.01 would confirm the bear case, suggesting ongoing struggles in managing costs and generating income.

Pre-Earnings Positioning

Options Market

Implied Move

±13.73%

Historical Avg

±7.9%

In line with history

The options market is pricing in a significant move around the earnings report, indicating that investors expect volatility based on the results.

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 and raises guidance, history suggests a potential average stock move of +2.57%, confirming a positive turnaround.

In-Line / Cautious

If results are in line with expectations but lack strong guidance, the stock may see muted movement as investors remain cautious.

Miss

If DNOW misses again, history suggests a potential average stock move of -3.87%, indicating further concerns about the company's performance.

Earnings Track Record

Preparation

What to Listen For

Call Prep

1Any updates on cost management strategies and their impact on gross margins.
2Details on demand trends in the energy and industrial markets.
3Insights into any new product lines or services that could drive future revenue.
4Management's commentary on competitive positioning and market share.
5Any guidance on expected revenue growth for the upcoming quarters.