NOW Inc. (DNOW) Misses Q4 EPS by 6c, Revenues Beat

NOW Inc. (NYSE: DNOW) reported Q4 EPS of ($0.25), $0.06 worse than the analyst estimate of ($0.19). Revenue for the quarter came in at $319 million versus the consensus estimate of $305.41 million.

Fourth Quarter 2020 Financial Highlights

• Revenue was $319 million for the fourth quarter of 2020
• Net loss was $44 million and non-GAAP net loss excluding other costs was $28 million for the fourth quarter of 2020
• Diluted loss per share was $0.40 and non-GAAP diluted loss per share excluding other costs was $0.25 for the fourth quarter of 2020
• Non-GAAP EBITDA excluding other costs for the fourth quarter of 2020 was a loss of $29 million, which includes the unfavorable impact of $24 million in non-cash inventory charges
• Included in our fourth quarter results, not considered other costs, was a pre-tax $24 million non-cash inventory charge, the unfavorable impact approximating $(0.17) per non-GAAP diluted share
• Cash and cash equivalents was $387 million and long-term debt was zero at December 31, 2020
• Free cash flow for the fourth quarter of 2020 was $55 million

David Cherechinsky, President and CEO of NOW Inc., added, “I am very pleased about our stronger than expected fourth quarter and thrilled about emerging from the lowest points in the market downturn with a great deal of flexibility in how we shape our company and expand on our success in the future. The women and men of DistributionNOW are the reason for our enviable position today. The faith and confidence I have in our employees, because of their perseverance though all the trials and tribulations of 2020, their continued patience, their innovation, and their constant focus on our customers, reaffirms my confidence that we are absolutely on the right path to ensure maneuverability in the evolving energy space.

A record cash balance of $387 million and zero debt, provide a firm financial footing. Couple that with profound cost transformation, buoyed by favorable oil price trends, the completion of our first acquisition of the year, the promise of vaccines, and a hunger for getting back to life as we once enjoyed it, all give us plenty to be excited about as we enter 2021.”

Prior to the earnings conference call a presentation titled “NOW Inc. Fourth Quarter and Full-Year 2020 Key Takeaways” will be available on the Company’s Investor Relations website.

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

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