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DuPont (DD) Warms Up to Q2 Earnings: What's in the Cards?
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DuPont de Nemours, Inc. (DD - Free Report) is scheduled to come up with second-quarter 2023 results, before the opening bell on Aug 2.
The company surpassed the Zacks Consensus Estimate in each of the trailing four quarters. In this timeframe, it delivered an earnings surprise of around 9.1%, on average. It posted an earnings surprise of 3.7% in the last reported quarter.
DuPont is likely to have benefited from strong demand in water and general industrial and its pricing and productivity actions in the second quarter. However, its results are likely to reflect the impacts of destocking in consumer electronics and raw material cost inflation.
DuPont’s shares are up 29% over a year compared with 9.7% rise 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 second quarter for DuPont is currently pinned at $3,003 million, suggesting an expected year-over-year decline of 9.6%.
Some Factors to Watch For
DuPont is expected to have benefited from healthy underlying demand in several end markets, including water and general industrial in the quarter to be reported. It is likely to have witnessed sustained strength in water and automotive adhesives, aerospace and healthcare.
The company is also likely to have benefited from its cost and productivity actions in the June quarter. Its structural cost actions are likely to have contributed to its bottom line in the quarter.
DuPont is also expected 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 second quarter.
However, the company is likely to have faced challenges from the slowdown in the consumer electronics and semiconductor markets. Reduced consumer electronics spending and inventory destocking are impacting its volumes. Lower semiconductor fab utilization rates are also hurting sales in the semiconductor technologies business. DD is seeing weakness in electronics and channel inventory destocking. This is likely to have impacted its performance in the second quarter.
Our estimate for the company’s Electronics & Industrial segment is pinned at $1,330.5 million, indicating a 12.9% year over year decline. The same for the Water & Protection unit is pegged at $1,417 million, suggesting a 5.3% year over year decline.
DuPont is also expected to have faced headwinds from higher raw material and logistics costs in the second 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.
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 +0.43%. The Zacks Consensus Estimate for earnings for the second quarter is currently pegged at 83 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 #4 (Sell).
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 consensus estimate for LTHM’s earnings for the second quarter is currently pegged at 46 cents.
ATI Inc. (ATI - Free Report) , slated to release earnings on Aug 2, has an Earnings ESP of +1.08% and carries a Zacks Rank #2 at present.
The consensus mark for ATI’s second-quarter earnings is currently pegged at 55 cents.
Kinross Gold Corporation (KGC - Free Report) , which is slated to release its earnings on Aug 2, has an Earnings ESP of +2.03% and a Zacks Rank #3 at present.
The consensus estimate for KGC’s second-quarter earnings is currently pegged at 8 cents.
Image: Bigstock
DuPont (DD) Warms Up to Q2 Earnings: What's in the Cards?
DuPont de Nemours, Inc. (DD - Free Report) is scheduled to come up with second-quarter 2023 results, before the opening bell on Aug 2.
The company surpassed the Zacks Consensus Estimate in each of the trailing four quarters. In this timeframe, it delivered an earnings surprise of around 9.1%, on average. It posted an earnings surprise of 3.7% in the last reported quarter.
DuPont is likely to have benefited from strong demand in water and general industrial and its pricing and productivity actions in the second quarter. However, its results are likely to reflect the impacts of destocking in consumer electronics and raw material cost inflation.
DuPont’s shares are up 29% over a year compared with 9.7% rise 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 second quarter for DuPont is currently pinned at $3,003 million, suggesting an expected year-over-year decline of 9.6%.
Some Factors to Watch For
DuPont is expected to have benefited from healthy underlying demand in several end markets, including water and general industrial in the quarter to be reported. It is likely to have witnessed sustained strength in water and automotive adhesives, aerospace and healthcare.
The company is also likely to have benefited from its cost and productivity actions in the June quarter. Its structural cost actions are likely to have contributed to its bottom line in the quarter.
DuPont is also expected 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 second quarter.
However, the company is likely to have faced challenges from the slowdown in the consumer electronics and semiconductor markets. Reduced consumer electronics spending and inventory destocking are impacting its volumes. Lower semiconductor fab utilization rates are also hurting sales in the semiconductor technologies business. DD is seeing weakness in electronics and channel inventory destocking. This is likely to have impacted its performance in the second quarter.
Our estimate for the company’s Electronics & Industrial segment is pinned at $1,330.5 million, indicating a 12.9% year over year decline. The same for the Water & Protection unit is pegged at $1,417 million, suggesting a 5.3% year over year decline.
DuPont is also expected to have faced headwinds from higher raw material and logistics costs in the second 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 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 +0.43%. The Zacks Consensus Estimate for earnings for the second quarter is currently pegged at 83 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 #4 (Sell).
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:
Livent Corporation , scheduled to release earnings on Aug 3, has an Earnings ESP of +2.43% and carries a Zacks Rank #1. You can see the complete list of today’s Zacks Rank #1 stocks here.
The consensus estimate for LTHM’s earnings for the second quarter is currently pegged at 46 cents.
ATI Inc. (ATI - Free Report) , slated to release earnings on Aug 2, has an Earnings ESP of +1.08% and carries a Zacks Rank #2 at present.
The consensus mark for ATI’s second-quarter earnings is currently pegged at 55 cents.
Kinross Gold Corporation (KGC - Free Report) , which is slated to release its earnings on Aug 2, has an Earnings ESP of +2.03% and a Zacks Rank #3 at present.
The consensus estimate for KGC’s second-quarter earnings is currently pegged at 8 cents.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.