A month has gone by since the last earnings report for DuPont de Nemours (DD Quick QuoteDD - Free Report) . Shares have added about 4.3% 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 the most recent earnings report in order to get a better handle on the important catalysts.

DuPont's Earnings and Revenues Top Estimates in Q1

DuPont logged earnings (on a reported basis) from continuing operations of 58 cents per share for first-quarter 2023, up from 42 cents per share in the year-ago quarter.

Barring one-time items, earnings came in at 84 cents per share for the reported quarter, topping the Zacks Consensus Estimate of 81 cents.
 
DuPont raked in net sales of $3,108 million, down 8% from the year-ago quarter. It surpassed the Zacks Consensus Estimate of $2,938.1. The company saw a 3% decline in organic sales in the quarter, hurt by 7% lower volumes that more than offset 4% higher pricing.

The company saw lower sales in Semiconductor Technologies and Interconnect Solutions in the reported quarter. However, Industrial Solutions and the Water & Protection segment recorded growth in organic sales. DuPont also witnessed continued strong demand in its automotive adhesives portfolio. It faced challenges in the electronics and construction-related end markets in the quarter.

Segment Highlights

The company’s Electronics & Industrial segment recorded net sales of $1,296 million in the reported quarter, down 16% on a year-over-year comparison basis. Organic sales fell 13% as higher prices were more than offset by reduced volumes. Semiconductor Technologies organic sales fell on lower volumes driven by lower semiconductor fab utilization rates. Industrial Solutions registered higher sales while organic sales declined in Interconnect Solutions on lower volumes due to reduced consumer electronics spending and destocking.

Net sales in the Water & Protection unit were $1,449 million, up 1% year over year. Organic sales rose 4% on pricing gains.

Financials

DuPont had cash and cash equivalents of $3,525 million at the end of the quarter, up around 111% year over year. Long-term debt was $7,807 million, down around 27% year over year.

The company also generated operating cash flow of $343 million during the quarter.

Outlook

The company now sees net sales for 2023 to be $12,300-$12,500 million. Adjusted earnings per share for 2023 is forecast to be $3.55-$3.70.

For second-quarter 2023, the company sees net sales of roughly $3,020 million. Adjusted earnings per share for the quarter is projected at roughly 84 cents.

DuPont also envisions sustained strength in water, automotive, aerospace and healthcare in the remainder of 2023. The company, however, sees weakness in electronics and channel inventory destocking in the near term.

 

How Have Estimates Been Moving Since Then?

In the past month, investors have witnessed a downward trend in estimates review.

VGM Scores

At this time, DuPont de Nemours has a poor Growth Score of F, a grade with the same score on the momentum front. However, the stock was allocated a grade of B on the value side, putting it in the top 40% for this investment strategy.

Overall, the stock has an aggregate VGM Score of D. 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. Notably, DuPont de Nemours has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.