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DuPont (DD) Warms Up for Q4 Earnings: What's in the Cards?
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DuPont de Nemours, Inc. (DD - Free Report) is scheduled to come up with fourth-quarter 2022 results, before the opening bell on Feb 7.
The company surpassed the Zacks Consensus Estimate in each of the trailing four quarters. In this timeframe, it delivered an earnings surprise of around 12.4%, on average. It posted an earnings surprise of 1.2% in the last reported quarter.
The company is likely to have benefited from strong end-market demand and its pricing and productivity actions in the fourth quarter. However, its results are likely to reflect the impacts of raw material and energy cost inflation as well as currency headwinds.
DuPont’s shares have lost 5.9% over a year compared with 5.2% decline recorded by the industry it belongs to.
Image Source: Zacks Investment Research
Let’s see how things are shaping up for this announcement.
What do the Estimates Say?
The Zacks Consensus Estimate for revenues for the fourth quarter for DuPont is currently pinned at $3,083 million, suggesting an expected year-over-year decline of 27.8%.
The consensus estimate for the company’s Electronics & Industrial segment is pegged at $1,368 million, indicating a 9% decline sequentially. The same for the Water & Protection unit is pegged at $1,455 million, suggesting a 5.1% sequential decline.
Some Factors to Watch For
DuPont is expected to have benefited from sustained strong global demand in semiconductors in the fourth quarter. Strong demand in water and general industrial end-markets is also likely to have supported its volumes.
The company is also likely to have benefited from its cost and productivity actions in the quarter to be reported. Its structural cost actions are likely to have contributed to its bottom line in the quarter.
The company is likely to have gained from its pricing actions. It continues to implement strategic price increases to offset the cost inflation. These actions are likely to have supported its results in the fourth quarter.
However, the company is likely to have faced challenges from higher raw material and logistics costs in the December quarter. Supply constraints for major raw materials are expected to have continued in the quarter. Higher energy costs driven by the Russia-Ukraine conflict are also expected to have impacted its results.
DuPont is also expected to have witnessed softness in the consumer electronics market in the fourth quarter. Weaker global demand in this market is likely to have affected its performance.
Currency headwinds due to strengthening of the U.S. dollar against key currencies are also likely to have affected the company’s top line in the quarter to be reported.
Our proven model does not conclusively predict an earnings beat for DuPont this season. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. But that’s not the case here.
Earnings ESP: Earnings ESP for DuPont is -0.73%. The Zacks Consensus Estimate for earnings for the fourth quarter is currently pegged at 79 cents. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: DuPont currently carries a Zacks Rank #3 (Hold).
Stocks That Warrant a Look
Here are some companies in the basic materials space you may want to consider, as our model shows these have the right combination of elements to post an earnings beat this quarter:
The Zacks Consensus Estimate for Albemarle’s fourth-quarter earnings has been revised 2.6% upward in the past 60 days. The Zacks Consensus Estimate for ALB’s earnings for the quarter is pegged at $7.89.
Quaker Chemical Corporation (KWR - Free Report) , expected to release earnings on Feb 23, has an Earnings ESP of +7.38%.
The Zacks Consensus Estimate for Quaker Chemical’s fourth-quarter earnings is currently pegged at $1.22. KWR currently carries a Zacks Rank #2.
Teck Resources Limited (TECK - Free Report) , scheduled to release earnings on Feb 21, has an Earnings ESP of +2.40%.
The Zacks Consensus Estimate for Teck Resources’ fourth-quarter earnings is currently pegged at 93 cents. TECK currently carries a Zacks Rank #2.
Image: Bigstock
DuPont (DD) Warms Up for Q4 Earnings: What's in the Cards?
DuPont de Nemours, Inc. (DD - Free Report) is scheduled to come up with fourth-quarter 2022 results, before the opening bell on Feb 7.
The company surpassed the Zacks Consensus Estimate in each of the trailing four quarters. In this timeframe, it delivered an earnings surprise of around 12.4%, on average. It posted an earnings surprise of 1.2% in the last reported quarter.
The company is likely to have benefited from strong end-market demand and its pricing and productivity actions in the fourth quarter. However, its results are likely to reflect the impacts of raw material and energy cost inflation as well as currency headwinds.
DuPont’s shares have lost 5.9% over a year compared with 5.2% decline recorded by the industry it belongs to.
Image Source: Zacks Investment Research
Let’s see how things are shaping up for this announcement.
What do the Estimates Say?
The Zacks Consensus Estimate for revenues for the fourth quarter for DuPont is currently pinned at $3,083 million, suggesting an expected year-over-year decline of 27.8%.
The consensus estimate for the company’s Electronics & Industrial segment is pegged at $1,368 million, indicating a 9% decline sequentially. The same for the Water & Protection unit is pegged at $1,455 million, suggesting a 5.1% sequential decline.
Some Factors to Watch For
DuPont is expected to have benefited from sustained strong global demand in semiconductors in the fourth quarter. Strong demand in water and general industrial end-markets is also likely to have supported its volumes.
The company is also likely to have benefited from its cost and productivity actions in the quarter to be reported. Its structural cost actions are likely to have contributed to its bottom line in the quarter.
The company is likely to have gained from its pricing actions. It continues to implement strategic price increases to offset the cost inflation. These actions are likely to have supported its results in the fourth quarter.
However, the company is likely to have faced challenges from higher raw material and logistics costs in the December quarter. Supply constraints for major raw materials are expected to have continued in the quarter. Higher energy costs driven by the Russia-Ukraine conflict are also expected to have impacted its results.
DuPont is also expected to have witnessed softness in the consumer electronics market in the fourth quarter. Weaker global demand in this market is likely to have affected its performance.
Currency headwinds due to strengthening of the U.S. dollar against key currencies are also likely to have affected the company’s top line in the quarter to be reported.
DuPont de Nemours, Inc. Price and EPS Surprise
DuPont de Nemours, Inc. price-eps-surprise | DuPont de Nemours, Inc. Quote
Zacks Model
Our proven model does not conclusively predict an earnings beat for DuPont this season. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. But that’s not the case here.
Earnings ESP: Earnings ESP for DuPont is -0.73%. The Zacks Consensus Estimate for earnings for the fourth quarter is currently pegged at 79 cents. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: DuPont currently carries a Zacks Rank #3 (Hold).
Stocks That Warrant a Look
Here are some companies in the basic materials space you may want to consider, as our model shows these have the right combination of elements to post an earnings beat this quarter:
Albemarle Corporation (ALB - Free Report) , slated to release earnings on Feb 15, has an Earnings ESP of +7.16% and carries a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Albemarle’s fourth-quarter earnings has been revised 2.6% upward in the past 60 days. The Zacks Consensus Estimate for ALB’s earnings for the quarter is pegged at $7.89.
Quaker Chemical Corporation (KWR - Free Report) , expected to release earnings on Feb 23, has an Earnings ESP of +7.38%.
The Zacks Consensus Estimate for Quaker Chemical’s fourth-quarter earnings is currently pegged at $1.22. KWR currently carries a Zacks Rank #2.
Teck Resources Limited (TECK - Free Report) , scheduled to release earnings on Feb 21, has an Earnings ESP of +2.40%.
The Zacks Consensus Estimate for Teck Resources’ fourth-quarter earnings is currently pegged at 93 cents. TECK currently carries a Zacks Rank #2.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.