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Dow Chemical (DOW) Tops Q3 Earnings & Revenue Estimates

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Dow Chemical (DOW - Free Report) is the biggest U.S. chemical maker by sales, offering a vast range of chemical, plastic and agricultural products and services. As the company’s products are used in almost every industry, its results put a spotlight on end market scenario and demand trends for chemical products across a bevy of industries.

Dow is leveraging its North American feedstock advantage and is investing billions of dollars for setting up crackers that produces ethylene from ethane. The company is also aggressively pursuing its productivity and growth actions as well as its cost-reduction initiatives. Moreover, Dow continues to seek opportunities to optimize its portfolio by selectively divesting underperforming assets and gradually shift focus to high-growth markets.

Let’s have a quick look at this chemical behemoth’s third-quarter 2016 release.

Estimate Trend & Surprise History

Investors should note that the earnings estimate for Dow for the third quarter has seen an uptrend over the past month. Dow has beaten the Zacks Consensus Estimate in the trailing 4 quarters with an average beat of 18.11%. Investors have been eagerly awaiting Dow’s latest earnings report to see whether it continues the winning streak.

DOW CHEMICAL Price and EPS Surprise

 

DOW CHEMICAL Price and EPS Surprise | DOW CHEMICAL Quote

Earnings

Dow logged adjusted earnings of 91 cents per share that topped the Zacks Consensus Estimate of 80 cents.

Revenues

Dow recorded net sales of $12,483 million, up roughly 4% year over year. That surpassed the Zacks Consensus Estimate of $12,076 million.

Key Stats/Developments to Note

Dow envisions steady growth in North America and Europe and expects strength of the consumer and emphasis on growth in Southeast Asia and second-tier cities in China to continue to boost its results in Asia Pacific. Dow also expects sustained strong growth fundamentals in its core markets of packaging, automotive and construction.

Zacks Rank

Dow currently has a Zacks Rank #2 (Buy).

Market Reaction

Dow’s shares rose around 2.8% in the pre-market trading. It would be interesting to see how the market reacts to the results during the trading session today.

Check back later for our full write up on Dow’s earnings report!

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