Don't Overlook DNOW (DNOW) International Revenue Trends While Assessing the Stock

Have you looked into how DNOW (DNOW) performed internationally during the quarter ending June 2025? Considering the widespread global presence of this energy and industrial distribution company, examining the trends in international revenues is essential for assessing its financial resilience and prospects for growth.In the modern, closely-knit global economic landscape, the capacity of a business to access foreign markets is often a key determinant of its financial well-being and growth path. Investors now place great importance on grasping the extent of a company's dependence on international markets, as it sheds light on the firm's earnings stability, its skill in leveraging various economic cycles and its broad growth potential.Participation in global economies acts as a defense against economic difficulties at home and a pathway to more rapidly developing economies. However, it also comes with the complexities of dealing with fluctuating currencies, geopolitical risks and different market dynamics.Our review of DNOW's last quarterly performance uncovered some notable trends in the revenue contributions from its international markets, which are commonly analyzed and tracked by Wall Street experts.The company's total revenue for the quarter amounted to $628 million, marking a decrease of 0.8% from the year-ago quarter. We will next turn our attention to dissecting DNOW's international revenue to get a clearer picture of how significant its operations are outside its main base.Decoding DNOW's International Revenue TrendsCanada generated $48 million in revenues for the company in the last quarter, constituting 7.6% of the total. This represented a surprise of -7.96% compared to the $52.15 million projected by Wall Street analysts. Comparatively, in the previous quarter, Canada accounted for $62 million (10.4%), and in the year-ago quarter, it contributed $56 million (8.9%) to the total revenue.During the quarter, International contributed $52 million in revenue, making up 8.3% of the total revenue. When compared to the consensus estimate of $55.6 million, this meant a surprise of -6.48%. Looking back, International contributed $63 million, or 10.5%, in the previous quarter, and $65 million, or 10.3%, in the same quarter of the previous year.International Revenue PredictionsIt is projected by analysts on Wall Street that DNOW will post revenues of $636.2 million for the ongoing fiscal quarter, an increase of 5% from the year-ago quarter. The expected contributions from Canada and International to this revenue are 9.2%, and 9.6%, translating into $58.5 million, and $61.2 million, respectively.For the full year, the company is expected to generate $2.46 billion in total revenue, up 3.8% from the previous year. Revenues from Canada and International are expected to constitute 9.3% ($229.95 million), and 9.7% ($238.85 million) of the total, respectively.Concluding RemarksDNOW's reliance on international markets for revenues offers both opportunities and risks. Hence, keeping an eye on its international revenue trends could significantly help forecast the company's prospects.In an environment where global interconnections and geopolitical skirmishes are intensifying, Wall Street analysts keep a keen eye on these trends, particularly for firms with overseas operations, to adjust their earnings predictions. Moreover, a range of other aspects, including how a company fares in its home country, significantly affects these projections.At Zacks, we place significant importance on a company's evolving earnings outlook. This is based on empirical evidence demonstrating its strong influence on a stock's short-term price movements. Invariably, there exists a positive relationship -- an upward revision in earnings estimates is typically mirrored by a rise in the stock price.With an impressive externally audited track record, our proprietary stock rating tool - the Zacks Rank - harnesses the power of earnings estimate revisions and serves as an effective indicator of a stock's near-term price performance.DNOW currently has a Zacks Rank #1 (Strong Buy), indicating that it could outperform the broader market in the near term. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> .Exploring Recent Trends in Stock PriceOver the past month, the stock has seen an increase of 9.7% in its value, whereas the Zacks S&P 500 composite has posted an increase of 2.7%. The Zacks Industrial Products sector, DNOW's industry group, has descended 0.1% over the identical span. In the past three months, there's been a decline of 2% in the company's stock price, against a rise of 13.2% in the S&P 500 index. The broader sector has increased by 11.6% during this interval.Zacks' Research Chief Names "Stock Most Likely to Double"Our team of experts has just released the 5 stocks with the greatest probability of gaining +100% or more in the coming months. Of those 5, Director of Research Sheraz Mian highlights the one stock set to climb highest.This top pick is a little-known satellite-based communications firm. Space is projected to become a trillion dollar industry, and this company's customer base is growing fast. Analysts have forecasted a major revenue breakout in 2025. Of course, all our elite picks aren't winners but this one could far surpass earlier Zacks' Stocks Set to Double like Hims & Hers Health, which shot up +209%.Free: See Our Top Stock And 4 Runners UpWant the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report DNOW Inc. (DNOW): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks