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DuPont (DD) Warms Up to Q4 Earnings: What's in the Cards?

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DuPont de Nemours, Inc. (DD - Free Report) is scheduled to come up with fourth-quarter 2021 results, before the opening bell on Feb 8. Benefits of strong demand and its cost-saving and productivity actions are expected to get reflected on its results. However, its results are likely to reflect the impacts of raw material cost inflation and challenges in the automotive market due to the chip shortage.

The company surpassed the Zacks Consensus Estimate in each of the trailing four quarters. In this timeframe, it delivered an earnings surprise of around 9.2%, on average. It posted an earnings surprise of 2.7% in the last reported quarter.
 
DuPont’s shares have gained 4% over a year compared with 9.4% rise recorded by the industry it belongs to.

 

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

What do the Estimates Say?

The Zacks Consensus Estimate for revenues for the fourth quarter for DuPont is currently pinned at $3,966 million, suggesting an expected year-over-year decline of 24.5%.

The Zacks Consensus Estimate for the company’s Electronics & Industrial segment is pegged at $1,408 million, reflecting a 4% decline on a sequential comparison basis.

The consensus estimate for the Mobility & Materials unit stands at $1,241 million, reflecting a 4% sequential decline. The same for the Water & Protection division is pegged at $1,334 million, indicating a roughly 5% sequential decline.

Some Factors to Watch For

The company is expected to have benefited, in the December quarter, from sustained strength in semiconductors. Strong demand in construction and water end-markets and sustained improvement in global industrial end-markets are also likely to have supported its performance. The company is likely to have witnessed continued strong demand in North American residential construction along with a sustained recovery in commercial construction in the fourth quarter.

DuPont is also 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 also continues to implement strategic price increases to offset the cost inflation. These actions are likely to have supported its results in the fourth quarter.

However, the company is likely to have faced challenges from higher raw material and logistics costs in the fourth quarter. Supply constraints for major raw materials are expected to have continued in the December quarter, affecting the company’s volumes.

DuPont is also expected to have witnessed a deceleration in order patterns due to the global semiconductor shortages, mainly in the automotive market. The chip shortage is likely to have impacted the automotive market in the fourth quarter. Weaker automotive production is expected to have affected DuPont’s Mobility & Materials unit in the quarter. The company’s results are also expected to reflect the weakness in certain consumer electronics markets due to the semiconductor shortage.

 

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

 

Zacks Model

Our proven model does not conclusively predict an earnings beat for DuPont this season. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. But that’s not the case here.

Earnings ESP: Earnings ESP for DuPont is -3.30%. The Zacks Consensus Estimate for earnings for the fourth quarter is currently pegged at $1.01. 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.

Stocks That Warrant a Look

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

Huntsman Corporation (HUN - Free Report) , scheduled to release earnings on Feb 15, has an Earnings ESP of +0.09% and carries a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for Huntsman's fourth-quarter earnings has been revised 4.1% upward over the past 60 days. The consensus estimate for HUN’s earnings for the quarter is currently pegged at 88 cents.

CF Industries Holdings, Inc. (CF - Free Report) , expected to release earnings on Feb 16, has an Earnings ESP of +9.44% and carries a Zacks Rank #2.

The consensus estimate for CF Industries' fourth-quarter earnings has been revised 40.1% upward over the past 60 days. The Zacks Consensus Estimate for CF’s earnings for the quarter stands at $3.25.

Nutrien Ltd. (NTR - Free Report) , scheduled to release earnings on Feb 16, has an Earnings ESP of +0.36% and sports a Zacks Rank #1.

The Zacks Consensus Estimate for Nutrien's fourth-quarter earnings has been revised 0.6% upward over the past 60 days. The consensus estimate for NTR’s earnings for the quarter is currently pegged at $2.31.

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.