Back to top

Image: Bigstock

DuPont (DD) Warms Up to Q2 Earnings: What's in the Offing?

Read MoreHide Full Article

DuPont de Nemours, Inc. (DD - Free Report) is scheduled to come up with second-quarter 2021 results, before the opening bell on Aug 3. Benefits of cost-savings and productivity actions and higher demand are expected to get reflected on its results. However, its results are likely to reflect the impacts of raw material cost inflation.

The company surpassed the Zacks Consensus Estimate in each of the trailing four quarters. In this timeframe, it delivered an earnings surprise of around 13.6%, on average. It posted an earnings surprise of 18.2% in the last reported quarter.

DuPont’s shares have gained 33.3% over a year compared with 32.2% rise recorded by the industry it belongs to.

 

Zacks Investment Research
Image Source: Zacks Investment Research



Let’s see how things are shaping up for this announcement.

Zacks Model

Our proven model predicts an earnings beat for DuPont this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earning beat.

Earnings ESP: Earnings ESP for DuPont is +3.81%. The Zacks Consensus Estimate for earnings for the second quarter is currently pegged at 94 cents. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Zacks Rank: DuPont currently carries a Zacks Rank #3.

What do the Estimates Say?

For the second quarter, DuPont sees net sales in the band of $3.925-$4.025 billion. Adjusted earnings is predicted in the range of 93-95 cents per share.

The Zacks Consensus Estimate for revenues for the second quarter is currently pinned at $4,003 million, suggesting an expected year-over-year decline of 17.1%.

The Zacks Consensus Estimate for the company’s Electronics & Industrial segment is pegged at $1,317 million, reflecting a 1.3% rise on a sequential comparison basis.

The consensus estimate for the Mobility & Materials unit stands at $1,244 million, reflecting a 2.4% sequential increase. The same for the Water & Protection division is pegged at $1,331 million, flat sequentially.

Some Factors to Watch For

DuPont is likely to have benefited from its cost and productivity actions in the quarter to be reported. Its structural cost actions are likely to have contributed to its bottom line in the quarter.

The company is also expected to have benefited, in the second quarter, from strong demand in semiconductor technologies and smartphones. Higher demand in water filtration technologies and construction and continued recovery in automotive and industrial markets are also likely to have supported its second-quarter performance.

However, the company is likely to have faced challenges from higher raw material and logistics costs in the second quarter, especially in its Mobility & Materials unit. Supply constraints for major raw materials are expected to have continued in the June quarter, affecting the company’s volumes.  DuPont expects around $90-$100 million of impact associated with raw material cost inflation in the second quarter.

 

DuPont de Nemours, Inc. Price and EPS Surprise

 

DuPont de Nemours, Inc. Price and EPS Surprise

DuPont de Nemours, Inc. price-eps-surprise | DuPont de Nemours, Inc. Quote

 

Stocks That Warrant a Look

Here are some companies in the basic materials space you may want to consider as our model shows they too have the right combination of elements to post an earnings beat this quarter:

LyondellBasell Industries N.V. (LYB - Free Report) , scheduled to release earnings on Jul 30, has an Earnings ESP of +6.99% and sports a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.

Westlake Chemical Corporation (WLK - Free Report) scheduled to release earnings on Aug 3, has an Earnings ESP of +1.50% and carries a Zacks Rank #1.

Eastman Chemical Company (EMN - Free Report) , scheduled to release earnings on Aug 2, has an Earnings ESP of +0.90% and carries a Zacks Rank #3.

Published in