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Why Is DuPont de Nemours (DD) Up 5.7% Since Last Earnings Report?
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A month has gone by since the last earnings report for DuPont de Nemours (DD - Free Report) . Shares have added about 5.7% in that time frame, outperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is DuPont de Nemours due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important catalysts.
DuPont's Q4 Earnings Surpass Estimates, Revenues Lag
DuPont 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. It 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.
Segment Highlights
The company’s Electronics & Industrial segment recorded net sales of roughly $1.36 billion in the reported quarter, up 1% on a year-over-year comparison basis. It was above our estimate of $1.34 billion. 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 around $1.28 billion, down 15% year over year, hurt by lower volumes. The figure was below our estimate of $1.38 billion. DuPont 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 roughly $2.39 billion at the end of 2023, down around 35% year over year. Long-term debt was around $7.8 billion, 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.
Outlook
The company sees net sales for 2024 to be $11.9-$12.3 billion. 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 $2.8 billion. 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.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed a downward trend in estimates revision.
VGM Scores
Currently, DuPont de Nemours has a poor Growth Score of F, a grade with the same score on the momentum front. Charting a somewhat similar path, the stock was allocated a grade of D on the value side, putting it in the bottom 40% for this investment strategy.
Overall, the stock has an aggregate VGM Score of F. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. It's no surprise DuPont de Nemours has a Zacks Rank #4 (Sell). We expect a below average return from the stock in the next few months.
Performance of an Industry Player
DuPont de Nemours belongs to the Zacks Chemical - Diversified industry. Another stock from the same industry, Eastman Chemical (EMN - Free Report) , has gained 5% over the past month. More than a month has passed since the company reported results for the quarter ended December 2023.
Eastman Chemical reported revenues of $2.21 billion in the last reported quarter, representing a year-over-year change of -7%. EPS of $1.31 for the same period compares with $0.89 a year ago.
Eastman Chemical is expected to post earnings of $1.49 per share for the current quarter, representing a year-over-year change of -8.6%. Over the last 30 days, the Zacks Consensus Estimate has changed -1.7%.
The overall direction and magnitude of estimate revisions translate into a Zacks Rank #3 (Hold) for Eastman Chemical. Also, the stock has a VGM Score of A.
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Why Is DuPont de Nemours (DD) Up 5.7% Since Last Earnings Report?
A month has gone by since the last earnings report for DuPont de Nemours (DD - Free Report) . Shares have added about 5.7% in that time frame, outperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is DuPont de Nemours due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important catalysts.
DuPont's Q4 Earnings Surpass Estimates, Revenues Lag
DuPont 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. It 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.
Segment Highlights
The company’s Electronics & Industrial segment recorded net sales of roughly $1.36 billion in the reported quarter, up 1% on a year-over-year comparison basis. It was above our estimate of $1.34 billion. 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 around $1.28 billion, down 15% year over year, hurt by lower volumes. The figure was below our estimate of $1.38 billion. DuPont 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 roughly $2.39 billion at the end of 2023, down around 35% year over year. Long-term debt was around $7.8 billion, 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.
Outlook
The company sees net sales for 2024 to be $11.9-$12.3 billion. 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 $2.8 billion. 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.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed a downward trend in estimates revision.
VGM Scores
Currently, DuPont de Nemours has a poor Growth Score of F, a grade with the same score on the momentum front. Charting a somewhat similar path, the stock was allocated a grade of D on the value side, putting it in the bottom 40% for this investment strategy.
Overall, the stock has an aggregate VGM Score of F. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. It's no surprise DuPont de Nemours has a Zacks Rank #4 (Sell). We expect a below average return from the stock in the next few months.
Performance of an Industry Player
DuPont de Nemours belongs to the Zacks Chemical - Diversified industry. Another stock from the same industry, Eastman Chemical (EMN - Free Report) , has gained 5% over the past month. More than a month has passed since the company reported results for the quarter ended December 2023.
Eastman Chemical reported revenues of $2.21 billion in the last reported quarter, representing a year-over-year change of -7%. EPS of $1.31 for the same period compares with $0.89 a year ago.
Eastman Chemical is expected to post earnings of $1.49 per share for the current quarter, representing a year-over-year change of -8.6%. Over the last 30 days, the Zacks Consensus Estimate has changed -1.7%.
The overall direction and magnitude of estimate revisions translate into a Zacks Rank #3 (Hold) for Eastman Chemical. Also, the stock has a VGM Score of A.