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DuPont's (DD) Q2 Earnings and Revenues Surpass Estimates
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DuPont de Nemours, Inc. (DD - Free Report) reported earnings from continuing operations of 55 cents per share for second-quarter 2023, down from 71 cents per share in the year-ago quarter.
Barring one-time items, earnings came in at 85 cents per share for the reported quarter, topping the Zacks Consensus Estimate of 83 cents.
DuPont raked in net sales of $3,094 million, down 7% from the year-ago quarter. It surpassed the Zacks Consensus Estimate of $3,002.6 million. The company saw a 4% decline in organic sales in the quarter, hurt by 6% lower volumes that more than offset 2% higher pricing.
DuPont de Nemours, Inc. Price, Consensus and EPS Surprise
The company’s Electronics & Industrial segment recorded net sales of $1,312 million in the reported quarter, down 14% on a year-over-year comparison basis. It was below our estimate of $1,330.5 million. Organic sales fell 12% due to a decrease in volumes.
Semiconductor Technologies experienced a 19% volume decline due to weaker end-market demand and channel inventory destocking, while Interconnect Solutions saw a 15% volume decrease due to reduced consumer electronics spending. Despite the volume declines, there was a 7% sequential sales improvement from the first quarter of 2023. The Industrial Solutions segment faced a 2% volume decline, with strong performance in broad-based industrial markets offset by reduced demand in consumer-related areas such as displays and advanced printing applications.
Net sales in the Water & Protection unit were $1,494 million, stable year over year. The figure was above our estimate of $1,417 million. Organic sales rose 1% on pricing gains. Safety Solutions experienced growth, up in mid-single digits, thanks to carryover pricing and increased volume in aerospace, automotive and healthcare sectors. However, Shelter Solutions faced a 12% decline in organic sales, primarily due to softness in construction markets and channel inventory destocking, partly offset by carryover pricing.
Financials
DuPont had cash and cash equivalents of $4,885 million at the end of the quarter, up around 239% year over year. Long-term debt was $7,775 million, down around 27% year over year.
The company also generated operating cash flow from continuing operations of $400 million during the quarter.
Guidance
The company now sees net sales for 2023 to be in the range of $12,450-$12,550 million. Adjusted earnings per share for 2023 are forecast to be $3.40-$3.50. For third-quarter 2023, the company sees net sales of roughly $3,150 million. Adjusted earnings per share for the quarter are projected at roughly 84 cents.
The Electronics & Industrial segment is expected to see a 10% organic decline in revenues compared to the previous year. However, the addition of Spectrum is set to boost reported revenues starting from Aug 1. Overall, full-year revenues are projected to decrease approximately 10% organically, primarily due to lower volumes and production adjustments.
For the Water & Protection unit, a mid-single-digit decline in revenues on an organic basis is expected compared to the previous year, as the benefit from carryover pricing ends. Despite this, Water Solutions is forecast to achieve mid-single-digit organic growth for the full year, though it may face some weakness in the second half due to softer demand in China. On the other hand, Safety Solutions is projected to experience steady demand throughout 2023, driven by growth in the aerospace, automotive and healthcare sectors. Meanwhile, the construction end markets are expected to remain weak throughout the year, with the impact of destocking reducing in the second half.
Price Performance
DuPont’s shares have risen 32.5% in a year compared with 13.6% rise recorded by the industry.
Image Source: Zacks Investment Research
Zacks Rank & Key Picks
DuPont currently carries a Zacks Rank #4 (Sell).
Some better-ranked stocks in the Basic Materials space include Livent Corporation ,and Carpenter Technology Corporation (CRS - Free Report) , both sporting a Zacks Rank #1 (Strong Buy), and PPG Industries, Inc. (PPG - Free Report) , carrying a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for LTHM’s current-year earnings has been revised 14% upward in the past 90 days. LTHM beat the Zacks Consensus Estimate in each of the last four quarters, with the average earnings surprise being 22%.
The earnings estimate for CRS’s current year is pegged at $1.04, indicating year-over-year growth of 198%. CRS beat the Zacks Consensus Estimate in all the last four quarters, with the average earnings surprise being 30.9%. The company’s shares have rallied 83.9% in the past year.
The Zacks Consensus Estimate for PPG’s current-year earnings has been revised 6.8% upward in the past 60 days. PPG beat the Zacks Consensus Estimate in three of the last four quarters. It delivered a trailing four-quarter earnings surprise of 7.3% on average. The company’s shares have risen roughly 14.9% in the past year.
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DuPont's (DD) Q2 Earnings and Revenues Surpass Estimates
DuPont de Nemours, Inc. (DD - Free Report) reported earnings from continuing operations of 55 cents per share for second-quarter 2023, down from 71 cents per share in the year-ago quarter.
Barring one-time items, earnings came in at 85 cents per share for the reported quarter, topping the Zacks Consensus Estimate of 83 cents.
DuPont raked in net sales of $3,094 million, down 7% from the year-ago quarter. It surpassed the Zacks Consensus Estimate of $3,002.6 million. The company saw a 4% decline in organic sales in the quarter, hurt by 6% lower volumes that more than offset 2% higher pricing.
DuPont de Nemours, Inc. Price, Consensus and EPS Surprise
DuPont de Nemours, Inc. price-consensus-eps-surprise-chart | DuPont de Nemours, Inc. Quote
Segment Highlights
The company’s Electronics & Industrial segment recorded net sales of $1,312 million in the reported quarter, down 14% on a year-over-year comparison basis. It was below our estimate of $1,330.5 million. Organic sales fell 12% due to a decrease in volumes.
Semiconductor Technologies experienced a 19% volume decline due to weaker end-market demand and channel inventory destocking, while Interconnect Solutions saw a 15% volume decrease due to reduced consumer electronics spending. Despite the volume declines, there was a 7% sequential sales improvement from the first quarter of 2023. The Industrial Solutions segment faced a 2% volume decline, with strong performance in broad-based industrial markets offset by reduced demand in consumer-related areas such as displays and advanced printing applications.
Net sales in the Water & Protection unit were $1,494 million, stable year over year. The figure was above our estimate of $1,417 million. Organic sales rose 1% on pricing gains. Safety Solutions experienced growth, up in mid-single digits, thanks to carryover pricing and increased volume in aerospace, automotive and healthcare sectors. However, Shelter Solutions faced a 12% decline in organic sales, primarily due to softness in construction markets and channel inventory destocking, partly offset by carryover pricing.
Financials
DuPont had cash and cash equivalents of $4,885 million at the end of the quarter, up around 239% year over year. Long-term debt was $7,775 million, down around 27% year over year.
The company also generated operating cash flow from continuing operations of $400 million during the quarter.
Guidance
The company now sees net sales for 2023 to be in the range of $12,450-$12,550 million. Adjusted earnings per share for 2023 are forecast to be $3.40-$3.50. For third-quarter 2023, the company sees net sales of roughly $3,150 million. Adjusted earnings per share for the quarter are projected at roughly 84 cents.
The Electronics & Industrial segment is expected to see a 10% organic decline in revenues compared to the previous year. However, the addition of Spectrum is set to boost reported revenues starting from Aug 1. Overall, full-year revenues are projected to decrease approximately 10% organically, primarily due to lower volumes and production adjustments.
For the Water & Protection unit, a mid-single-digit decline in revenues on an organic basis is expected compared to the previous year, as the benefit from carryover pricing ends. Despite this, Water Solutions is forecast to achieve mid-single-digit organic growth for the full year, though it may face some weakness in the second half due to softer demand in China. On the other hand, Safety Solutions is projected to experience steady demand throughout 2023, driven by growth in the aerospace, automotive and healthcare sectors. Meanwhile, the construction end markets are expected to remain weak throughout the year, with the impact of destocking reducing in the second half.
Price Performance
DuPont’s shares have risen 32.5% in a year compared with 13.6% rise recorded by the industry.
Image Source: Zacks Investment Research
Zacks Rank & Key Picks
DuPont currently carries a Zacks Rank #4 (Sell).
Some better-ranked stocks in the Basic Materials space include Livent Corporation ,and Carpenter Technology Corporation (CRS - Free Report) , both sporting a Zacks Rank #1 (Strong Buy), and PPG Industries, Inc. (PPG - Free Report) , carrying a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for LTHM’s current-year earnings has been revised 14% upward in the past 90 days. LTHM beat the Zacks Consensus Estimate in each of the last four quarters, with the average earnings surprise being 22%.
The earnings estimate for CRS’s current year is pegged at $1.04, indicating year-over-year growth of 198%. CRS beat the Zacks Consensus Estimate in all the last four quarters, with the average earnings surprise being 30.9%. The company’s shares have rallied 83.9% in the past year.
The Zacks Consensus Estimate for PPG’s current-year earnings has been revised 6.8% upward in the past 60 days. PPG beat the Zacks Consensus Estimate in three of the last four quarters. It delivered a trailing four-quarter earnings surprise of 7.3% on average. The company’s shares have risen roughly 14.9% in the past year.