What Happened?
Shares of energy and industrial distributor DistributionNOW (NYSE:DNOW) jumped 20.3% in the afternoon session after the company reported strong fourth-quarter results, significantly surpassing analysts' sales, EPS, and EBITDA estimates. The company also doubled the size of its share repurchase program to $160m, highlighting the focus on returning value to shareholders. Zooming out, we think this quarter featured some important positives.
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What The Market Is Telling Us
DistributionNOW’s shares are not very volatile and have only had 5 moves greater than 5% over the last year. Moves this big are rare for DistributionNOW and indicate this news significantly impacted the market’s perception of the business.
DistributionNOW is up 31.2% since the beginning of the year, and at $17.00 per share, has set a new 52-week high. Investors who bought $1,000 worth of DistributionNOW’s shares 5 years ago would now be looking at an investment worth $1,676.
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