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DuPont (DD) Gears Up for Q3 Earnings: What's in the Offing?
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DuPont de Nemours, Inc. (DD - Free Report) is scheduled to come up with third-quarter 2022 results, before the opening bell on Nov 8.
The company surpassed the Zacks Consensus Estimate in each of the trailing four quarters. In this timeframe, it delivered an earnings surprise of around 12.7%, on average. It posted an earnings surprise of 18.9% in the last reported quarter.
The company is likely to have benefited from strong end-market demand and its pricing and productivity actions in the third quarter. However, its results are likely to reflect the impacts of raw material and energy cost inflation as well as currency headwinds.
DuPont’s shares have lost 22.2% over a year compared with 12.1% decline recorded by the industry it belongs to.
Image Source: Zacks Investment Research
What do the Estimates Say?
The Zacks Consensus Estimate for revenues for the third quarter for DuPont is currently pinned at $3,267 million, suggesting an expected year-over-year decline of 23.5%.
The consensus estimate for the company’s Electronics & Industrial segment is pinned at $1,514 million, indicating a 0.9% decline sequentially. The same for the Water & Protection unit is pegged at $1,449 million, suggesting a 3.2% sequential decline.
Some Factors to Watch For
The company is expected to have benefited from sustained strong global demand in semiconductors in the third quarter. Strong demand in general industrial, water and construction end-markets is also likely to have supported its volumes.
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 is likely to have gained from its pricing actions. It continues to implement strategic price increases to offset the cost inflation. These actions are likely to have supported its results in the September quarter.
However, the company is likely to have faced challenges from higher raw material and logistics costs in the third quarter. Supply constraints for major raw materials are expected to have continued in the September quarter. Higher energy costs driven by the Russia-Ukraine conflict are also expected to have impacted its results.
DuPont is also expected to have witnessed lower volumes in the Safety Solutions business in the third quarter due to a plant downtime associated with a third-partly utility disruption.
Currency headwinds due to the strengthening of the U.S. dollar against key currencies are also likely to have affected the company’s top line in the quarter to be reported.
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 -0.62%. The Zacks Consensus Estimate for earnings for the third quarter is currently pegged at 81 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 #4 (Sell).
Stocks That Warrant a Look
Here are some companies you may want to consider, as our model shows these have the right combination of elements to post an earnings beat this quarter:
Plug Power Inc. (PLUG - Free Report) , slated to release earnings on Nov 8, has an Earnings ESP of +1.08%.
The Zacks Consensus Estimate for Plug Power’s third-quarter earnings is currently pegged at a loss of 25 cents. PLUG currently carries a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.
MAG Silver Corp. (MAG - Free Report) , expected to release earnings on Nov 21, has an Earnings ESP of +18.18%.
The consensus estimate for MAG Silver's third-quarter earnings is currently pegged at 11 cents. MAG currently carries a Zacks Rank #3.
Perpetua Resources Corp. (PPTA - Free Report) , expected to release earnings on Nov 11, has an Earnings ESP of +50.00%.
The Zacks Consensus Estimate for PPTA's earnings for the third quarter is currently pegged at a loss of 8 cents. PPTA currently carries a Zacks Rank #1.
Image: Bigstock
DuPont (DD) Gears Up for Q3 Earnings: What's in the Offing?
DuPont de Nemours, Inc. (DD - Free Report) is scheduled to come up with third-quarter 2022 results, before the opening bell on Nov 8.
The company surpassed the Zacks Consensus Estimate in each of the trailing four quarters. In this timeframe, it delivered an earnings surprise of around 12.7%, on average. It posted an earnings surprise of 18.9% in the last reported quarter.
The company is likely to have benefited from strong end-market demand and its pricing and productivity actions in the third quarter. However, its results are likely to reflect the impacts of raw material and energy cost inflation as well as currency headwinds.
DuPont’s shares have lost 22.2% over a year compared with 12.1% decline recorded by the industry it belongs to.
Image Source: Zacks Investment Research
What do the Estimates Say?
The Zacks Consensus Estimate for revenues for the third quarter for DuPont is currently pinned at $3,267 million, suggesting an expected year-over-year decline of 23.5%.
The consensus estimate for the company’s Electronics & Industrial segment is pinned at $1,514 million, indicating a 0.9% decline sequentially. The same for the Water & Protection unit is pegged at $1,449 million, suggesting a 3.2% sequential decline.
Some Factors to Watch For
The company is expected to have benefited from sustained strong global demand in semiconductors in the third quarter. Strong demand in general industrial, water and construction end-markets is also likely to have supported its volumes.
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 is likely to have gained from its pricing actions. It continues to implement strategic price increases to offset the cost inflation. These actions are likely to have supported its results in the September quarter.
However, the company is likely to have faced challenges from higher raw material and logistics costs in the third quarter. Supply constraints for major raw materials are expected to have continued in the September quarter. Higher energy costs driven by the Russia-Ukraine conflict are also expected to have impacted its results.
DuPont is also expected to have witnessed lower volumes in the Safety Solutions business in the third quarter due to a plant downtime associated with a third-partly utility disruption.
Currency headwinds due to the strengthening of the U.S. dollar against key currencies are also likely to have affected the company’s top line in the quarter to be reported.
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 -0.62%. The Zacks Consensus Estimate for earnings for the third quarter is currently pegged at 81 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 #4 (Sell).
Stocks That Warrant a Look
Here are some companies you may want to consider, as our model shows these have the right combination of elements to post an earnings beat this quarter:
Plug Power Inc. (PLUG - Free Report) , slated to release earnings on Nov 8, has an Earnings ESP of +1.08%.
The Zacks Consensus Estimate for Plug Power’s third-quarter earnings is currently pegged at a loss of 25 cents. PLUG currently carries a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.
MAG Silver Corp. (MAG - Free Report) , expected to release earnings on Nov 21, has an Earnings ESP of +18.18%.
The consensus estimate for MAG Silver's third-quarter earnings is currently pegged at 11 cents. MAG currently carries a Zacks Rank #3.
Perpetua Resources Corp. (PPTA - Free Report) , expected to release earnings on Nov 11, has an Earnings ESP of +50.00%.
The Zacks Consensus Estimate for PPTA's earnings for the third quarter is currently pegged at a loss of 8 cents. PPTA currently carries a Zacks Rank #1.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.