Yahoo Finance DuPont's (DD) Earnings and Revenues Surpass Estimates in Q4
DuPont de Nemours, Inc. DD logged earnings (on a reported basis) from continuing operations of 20 cents per share for fourth-quarter 2022, down from 29 cents per share in the year-ago quarter.
Barring one-time items, earnings came in at 89 cents per share for the reported quarter, topping the Zacks Consensus Estimate of 79 cents.
DuPont raked in net sales of $3,104 million, down 4% from the year-ago quarter. It also surpassed the Zacks Consensus Estimate of $3,083.2. The company saw a 5% rise in organic sales in the quarter, supported by 7% higher pricing that offset 2% lower volumes. The company was challenged by weak conditions in electronics and construction end-markets in the reported quarter. It benefited from disciplined pricing actions to offset inflation.
Sustained strength in water solutions, growth in the automotive adhesives portfolio and gains in certain industrial end-markets were more than offset by weakness in smartphones and personal computing, the slowdown in semiconductor and construction and lower volumes from protective garments.
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 $1,343 million in the reported quarter, down 8% on a year-over-year comparison basis. Organic sales fell 2% as higher prices were more than offset by reduced volumes. Semiconductor Technologies organic sales rose on higher pricing. Industrial Solutions also registered higher sales while organic sales declined in Interconnect Solutions on lower volumes.
Net sales in the Water & Protection unit were $1,497 million, up 6% year over year. Organic sales rose 12% on pricing gains.
FY22 Results
Earnings from continuing operations for full-year 2022 were $2.02 per share compared with $2.16 per share a year ago. Net sales went up around 4% year over year to $13 billion.
Financials
DuPont had cash and cash equivalents of $3,662 million at the end of 2022, up around 86% year over year. Long-term debt was $7,774 million, down around 27% year over year.
The company also generated operating cash flow of $126 million during the quarter and $588 million in 2022. It deployed more than $7.5 billion of capital through share repurchases, dividends and debt paydown during 2022.
DuPont’s board also declared a first-quarter 2023 dividend of 36 cents per share, representing a 9% increase.
Outlook
The company sees net sales for 2023 to be $12,300-$12,900 million. Adjusted earnings per share for 2023 is forecast to be $3.50-$4.00.
For first-quarter 2023, the company sees net sales of roughly $2,900 million. Adjusted earnings per share for the quarter is projected at roughly 80 cents.
DuPont also envisions sustained strength in water and automotive adhesives and stable demand across industrial end-markets including aerospace and healthcare products in 2023. The company, however, sees lower volumes during first-half 2023 in consumer electronics and semiconductors due to reduced consumer spending, inventory destocking and COVID-related impacts in China. It also expects weakness in construction end-markets in Water & Protection during 2023. DuPont projects organic sales to decline in the mid single-digits year over year in the first quarter due to continued weakness in these consumer-driven markets.
Price Performance
DuPont’s shares are down 4% over a year compared with 8.6% rise recorded by the industry.
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Zacks Rank & Other Key Picks
DuPont currently carries a Zacks Rank #3 (Hold).
Better-ranked stocks worth considering in the basic materials space include Steel Dynamics, Inc. STLD, Commercial Metals Company CMC and Agnico Eagle Mines Limited AEM.
Steel Dynamics currently sports a Zacks Rank #1 (Strong Buy). The Zacks Consensus Estimate for STLD's current-year earnings has been revised 25.2% upward in the past 60 days. You can see the complete list of today’s Zacks #1 Rank stocks here.
Steel Dynamics’ earnings beat the Zacks Consensus Estimate in each of the last four quarters. It has a trailing four-quarter earnings surprise of roughly 11.3%, on average. STLD has rallied around 112% in a year.
Commercial Metals currently carries a Zacks Rank #1. The consensus estimate for CMC's current-year earnings has been revised 10% upward in the past 60 days.
Commercial Metals’ earnings beat the Zacks Consensus Estimate in each of the last four quarters. It has a trailing four-quarter earnings surprise of roughly 16.7%, on average. CMC has gained around 64% in a year.
Agnico Eagle currently carries a Zacks Rank #2 (Buy). The Zacks Consensus Estimate for AEM’s current-year earnings has been revised 0.4% upward in the past 60 days.
Agnico Eagle beat Zacks Consensus Estimate in three of the last four quarters. It delivered a trailing four-quarter earnings surprise of 26.4% on average. AEM’s shares have gained roughly 7% in the past year.
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