It has been about a month since the last earnings report for DuPont de Nemours (DD). Shares have lost about 2.2% in that time frame, underperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is DuPont de Nemours due for a breakout? 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 registered earnings from continuing operations of $1.13 per share in the third quarter of 2024, up from earnings of 62 cents per share in the year-ago quarter. Barring one-time items, earnings came in at $1.18 per share in the reported quarter, topping the Zacks Consensus Estimate of $1.04.
DuPont logged net sales of $3.19 billion, marking a 4% year-over-year increase. It missed the Zacks Consensus Estimate of $3.20 billion. Organic sales increased 3% in the quarter, as a 5% increase in volume more than offset a 2% decline in price. The rise in volume was driven by sustained growth in the electronics market and a return of year-over-year growth in water solutions. DuPont saw continued semiconductor demand recovery in the quarter driven by AI technology applications and higher demand in China.
The company's Electronics & Industrial segment reported net sales of $1.55 billion in the quarter, a 13% year-over-year increase. Organic sales grew 10%, driven by an 11% rise in volume, which was modestly offset by a 1% decrease in price.
The Water & Protection unit recorded net sales of $1.38 billion, a 2% decline from the previous year. The decline was due to a 2% drop in price with volumes remaining flat year over year.
DuPont had cash and cash equivalents of $1.65 billion at the end of the quarter, down around 9% sequentially. Long-term debt was $7.17 billion, flat sequentially.
The company generated operating cash flow from continuing operations of $737 million in the third quarter.
DuPont raised its projections for operating EBITDA and adjusted earnings per share. The company anticipates full-year 2024 net sales to be around $12.365 billion. Operating EBITDA is now forecast to be roughly $3.125 billion (up from the prior view of $3.060-$3.110 billion) while adjusted earnings are projected to be around $3.90 per share for the year (up from $3.70-$3.80 expected earlier).
For the fourth quarter of 2024, DuPont forecasts net sales of around $3.070 billion, operating EBITDA of roughly $790 million and adjusted earnings of around 98 cents per share. The guidance assumes sales and earnings growth for both segments. The company expects normal seasonal declines in electronics and construction markets, partly offset by continued recovery in water and medical packaging markets.
It turns out, fresh estimates have trended downward during the past month.
Currently, DuPont de Nemours has an average Growth Score of C, though it is lagging a lot on the Momentum Score front with an F. However, the stock was allocated a grade of C on the value side, putting it in the middle 20% for this investment strategy.
Overall, the stock has an aggregate VGM Score of C. If you aren't focused on one strategy, this score is the one you should be interested in.
Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Notably, DuPont de Nemours has a Zacks Rank #2 (Buy). We expect an above average return from the stock in the next few months.
DuPont de Nemours belongs to the Zacks Chemical - Diversified industry. Another stock from the same industry, Chemours (CC), has gained 2.7% over the past month. More than a month has passed since the company reported results for the quarter ended September 2024.
Chemours reported revenues of $1.5 billion in the last reported quarter, representing a year-over-year change of +0.9%. EPS of $0.40 for the same period compares with $0.64 a year ago.
Chemours is expected to post earnings of $0.30 per share for the current quarter, representing a year-over-year change of -3.2%. Over the last 30 days, the Zacks Consensus Estimate has changed -2.5%.
The overall direction and magnitude of estimate revisions translate into a Zacks Rank #3 (Hold) for Chemours. Also, the stock has a VGM Score of D.
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