We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
DuPont's (DD) Q4 Earnings Surpass Estimates, Revenues Lag
Read MoreHide Full Article
DuPont de Nemours, Inc. (DD - Free Report) incurred a loss (on a reported basis) from continuing operations $300 million or 72 cents per share in fourth-quarter 2023. In the year-ago quarter, the company had reported a profit of $105 million or 20 cents per share. The bottom line in the reported quarter was hurt by a hefty non-cash goodwill impairment charge of around $800 million.
Barring one-time items, earnings came in at 87 cents per share for the reported quarter, topping the Zacks Consensus Estimate of 85 cents.
DuPont raked in net sales of $2,898 million, down 7% from the year-ago quarter. It missed the Zacks Consensus Estimate of $2,902 million. DD saw a 10% decline in organic sales in the quarter, hurt by a 9% lower volume and a 1% decline in pricing.
The company witnessed challenges from continued economic weakness in China and channel inventory de-stocking in the reported quarter.
DuPont de Nemours, Inc. Price, Consensus and EPS Surprise
The company’s Electronics & Industrial segment recorded net sales of $1,361 million in the reported quarter, up 1% on a year-over-year comparison basis. It was above our estimate of $1,339.6 million. Organic sales fell 7% on reduced volumes and prices.
Semiconductor Technologies organic sales fell on sustained customer inventory de-stocking and lower semiconductor fab utilization rates. Industrial Solutions registered lower sales mainly due to de-stocking within biopharma markets and for semiconductor-related capex equipment. Organic sales declined in Interconnect Solutions as higher volumes were more than offset by lower pass-through metals prices.
Net sales in the Water & Protection unit were $1,277 million, down 15% year over year, hurt by lower volumes. The figure was below our estimate of $1,381 million. DD saw lower sales in Safety Solutions, Water Solutions and Shelter Solutions on an organic basis in the quarter.
FY23 Results
Earnings from continuing operations for 2023 were $1.09 per share, compared with $2.02 a year ago. Net sales were $12.1 billion for the full year, down around 7% year over year.
Financials
DuPont had cash and cash equivalents of $2,392 million at the end of 2023, down around 35% year over year. Long-term debt was $7,800 million, up about 0.3% year over year.
The company generated operating cash flow from continuing operations of $646 million during the fourth quarter and $2.2 billion for full-year 2023.
DuPont completed the $2 billion accelerated share repurchase transaction launched in September 2023. It has announced the authorization of a new $1 billion share buyback program and a 6% increase to its quarterly dividend.
Outlook
The company sees net sales for 2024 to be $11,900-$12,300 million. Adjusted earnings per share for 2024 is forecast to be $3.25-$3.65.
For first-quarter 2024, the company expects net sales of roughly $2,800 million. Adjusted earnings per share for the quarter is projected in the range of 63-65 cents.
DuPont expects a sequential decline in sales and earnings in the first quarter driven by additional channel inventory de-stocking within its industrial-based businesses and continued weak demand in China.
Price Performance
DuPont’s shares have lost 21.3% in a year compared with the 19.8% decline recorded by the industry.
Image Source: Zacks Investment Research
Zacks Rank & Key Picks
DuPont currently has a Zacks Rank #3 (Hold).
Better-ranked stocks worth a look in the basic materials space include, Cameco Corporation (CCJ - Free Report) , Carpenter Technology Corporation (CRS - Free Report) and Alpha Metallurgical Resources Inc. (AMR - Free Report) .
Cameco has a projected earnings growth rate of 188% for the current year. The Zacks Consensus Estimate for CCJ’s current-year earnings has been revised upward by 12.5% over the past 60 days. The stock has shot up around 74% in a year. CCJ currently carries a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The consensus estimate for Carpenter Technology’s current fiscal year earnings is pegged at $3.97, indicating a year-over-year surge of 248.3%. CRS, carrying a Zacks Rank #1, beat the Zacks Consensus Estimate in three of the last four quarters while matching it once, with the average earnings surprise being 12.2%. The company’s shares have gained 16% in the past year.
The Zacks Consensus Estimate for Alpha Metallurgical Resources’ current-year earnings has been revised upward by 8.8% in the past 60 days. It currently carries a Zacks Rank #1. AMR delivered a trailing four-quarter earnings surprise of roughly 9.6%, on average. AMR shares are up around 139% in a year.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
DuPont's (DD) Q4 Earnings Surpass Estimates, Revenues Lag
DuPont de Nemours, Inc. (DD - Free Report) incurred a loss (on a reported basis) from continuing operations $300 million or 72 cents per share in fourth-quarter 2023. In the year-ago quarter, the company had reported a profit of $105 million or 20 cents per share. The bottom line in the reported quarter was hurt by a hefty non-cash goodwill impairment charge of around $800 million.
Barring one-time items, earnings came in at 87 cents per share for the reported quarter, topping the Zacks Consensus Estimate of 85 cents.
DuPont raked in net sales of $2,898 million, down 7% from the year-ago quarter. It missed the Zacks Consensus Estimate of $2,902 million. DD saw a 10% decline in organic sales in the quarter, hurt by a 9% lower volume and a 1% decline in pricing.
The company witnessed challenges from continued economic weakness in China and channel inventory de-stocking in the reported quarter.
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 $1,361 million in the reported quarter, up 1% on a year-over-year comparison basis. It was above our estimate of $1,339.6 million. Organic sales fell 7% on reduced volumes and prices.
Semiconductor Technologies organic sales fell on sustained customer inventory de-stocking and lower semiconductor fab utilization rates. Industrial Solutions registered lower sales mainly due to de-stocking within biopharma markets and for semiconductor-related capex equipment. Organic sales declined in Interconnect Solutions as higher volumes were more than offset by lower pass-through metals prices.
Net sales in the Water & Protection unit were $1,277 million, down 15% year over year, hurt by lower volumes. The figure was below our estimate of $1,381 million. DD saw lower sales in Safety Solutions, Water Solutions and Shelter Solutions on an organic basis in the quarter.
FY23 Results
Earnings from continuing operations for 2023 were $1.09 per share, compared with $2.02 a year ago. Net sales were $12.1 billion for the full year, down around 7% year over year.
Financials
DuPont had cash and cash equivalents of $2,392 million at the end of 2023, down around 35% year over year. Long-term debt was $7,800 million, up about 0.3% year over year.
The company generated operating cash flow from continuing operations of $646 million during the fourth quarter and $2.2 billion for full-year 2023.
DuPont completed the $2 billion accelerated share repurchase transaction launched in September 2023. It has announced the authorization of a new $1 billion share buyback program and a 6% increase to its quarterly dividend.
Outlook
The company sees net sales for 2024 to be $11,900-$12,300 million. Adjusted earnings per share for 2024 is forecast to be $3.25-$3.65.
For first-quarter 2024, the company expects net sales of roughly $2,800 million. Adjusted earnings per share for the quarter is projected in the range of 63-65 cents.
DuPont expects a sequential decline in sales and earnings in the first quarter driven by additional channel inventory de-stocking within its industrial-based businesses and continued weak demand in China.
Price Performance
DuPont’s shares have lost 21.3% in a year compared with the 19.8% decline recorded by the industry.
Image Source: Zacks Investment Research
Zacks Rank & Key Picks
DuPont currently has a Zacks Rank #3 (Hold).
Better-ranked stocks worth a look in the basic materials space include, Cameco Corporation (CCJ - Free Report) , Carpenter Technology Corporation (CRS - Free Report) and Alpha Metallurgical Resources Inc. (AMR - Free Report) .
Cameco has a projected earnings growth rate of 188% for the current year. The Zacks Consensus Estimate for CCJ’s current-year earnings has been revised upward by 12.5% over the past 60 days. The stock has shot up around 74% in a year. CCJ currently carries a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The consensus estimate for Carpenter Technology’s current fiscal year earnings is pegged at $3.97, indicating a year-over-year surge of 248.3%. CRS, carrying a Zacks Rank #1, beat the Zacks Consensus Estimate in three of the last four quarters while matching it once, with the average earnings surprise being 12.2%. The company’s shares have gained 16% in the past year.
The Zacks Consensus Estimate for Alpha Metallurgical Resources’ current-year earnings has been revised upward by 8.8% in the past 60 days. It currently carries a Zacks Rank #1. AMR delivered a trailing four-quarter earnings surprise of roughly 9.6%, on average. AMR shares are up around 139% in a year.