NOW Inc. (DNOW) Misses Q1 EPS by 1c, Revenues Miss

NOW Inc. (NYSE: DNOW) reported Q1 EPS of ($0.07), $0.01 worse than the analyst estimate of ($0.06). Revenue for the quarter came in at $604 million versus the consensus estimate of $622.77 million.

Financial Highlights

• Revenue was $604 million for the first quarter of 2020
• Net loss was $331 million and non-GAAP net loss excluding other costs was $8 million for the first quarter of 2020
• Diluted loss per share was $3.03 and non-GAAP diluted loss per share excluding other costs was $0.07 for the first quarter of 2020
• Non-GAAP EBITDA excluding other costs for the first quarter of 2020 was $2 million
• Cash provided by operating and investing activities was $28 million for the first quarter of 2020
• Cash and cash equivalents was $202 million and long-term debt was zero at March 31, 2020
• Current initiatives expected to generate approximately $100 million of warehousing, selling and administrative savings in 2020 compared to 2019, including 1,250 completed headcount reductions this year

Refer to Supplemental Information in this release for GAAP to non-GAAP reconciliations.

Dick Alario, Interim CEO of NOW Inc., noted, “The market faces a challenging environment due to steep declines in oil prices, rig counts and worldwide oil demand. Through our financial discipline, we entered this unprecedented period with zero debt, over $200 million in cash and access to ample liquidity under our credit facility. We have accelerated our structural transformation, which includes streamlining our organization and deploying technology to create additional customer value and revenue through our DigitalNOW® investment.

“While the timing of a recovery is uncertain, I am confident DNOW will be a much leaner, transformed company, well-positioned to capitalize on the next market upswing.”

For earnings history and earnings-related data on NOW Inc. (DNOW) click here.

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