Why NOW Stock Is Rallying Today
Shares of NOW (NYSE: DNOW) jumped more than 11% by 3 p.m. EST on Wednesday. The main factor driving the rally of the equipment distributor, which is focused on the energy industry, was its third-quarter earnings report.
On the one hand, the continued challenges in the oil and gas market hurt NOW's results as its revenue slumped 8.6% year over year to $715 million, falling about $13 million short of expectations. Adjusted net income, however, came in at $9 million, or $0.08 per share, which is $0.01 per share ahead of the consensus estimate. Driving that stronger-than-expected earnings result was the company's efforts to reduce costs.
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Source Fool.com
