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DuPont's (DD) Earnings and Revenues Top Estimates in Q2
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DuPont de Nemours, Inc. (DD - Free Report) registered a profit from continuing operations of $176 million or 40 cents per share in the second quarter of 2024. In the year-ago quarter, the company recorded a profit of $269 million or 55 cents per share.
Barring one-time items, earnings came in at 97 cents per share in the reported quarter, topping the Zacks Consensus Estimate of 85 cents.
DuPont's net sales reached $3,171 million, marking a 2% year-over-year increase and surpassing the Zacks Consensus Estimate of $3,035.8 million. Organic sales remained flat in the quarter, as a 2% increase in volume was counterbalanced by a 2% decrease in price.
The rise in volume was primarily driven by broad-based growth in the electronics sector. However, this was partially offset by year-over-year declines in industrial businesses, particularly in Water Solutions in China and medical packaging within Safety Solutions.
DuPont de Nemours, Inc. Price, Consensus and EPS Surprise
The company's Electronics & Industrial segment reported net sales of $1,508 million in the quarter, a 15% year-over-year increase, surpassing our estimate of $1,408.4 million. Organic sales grew 8%, driven by a 10% rise in volume, which was partially offset by a 2% decrease in price.
Semiconductor Technologies saw a more than 20% increase in organic sales, fueled by continued recovery in semiconductor demand, advancements in AI-driven technology and higher volumes for OLED materials due to new product launches. Interconnect Solutions experienced low-teens growth in organic sales, with mid-teens volume gains reflecting a broad-based recovery in consumer electronics. Industrial Solutions faced a low-double-digit decline in organic sales, primarily due to ongoing channel inventory destocking in the Kalrez and biopharma markets.
The Water & Protection unit recorded net sales of $1,391 million, a 7% decrease from the previous year, surpassing our estimate of $1,359.5 million. The decline was due to a 6% drop in organic sales and a 1% currency headwind, with organic sales reflecting a 4% decrease in volume and a 2% decrease in price.
Safety Solutions saw high-single-digit declines in organic sales, mainly due to volume reductions and continued channel inventory destocking for medical packaging products. Water Solutions also experienced high-single-digit declines in organic sales, driven by lower volumes from distributor inventory destocking in China. Conversely, Shelter Solutions achieved low-single-digit growth in organic sales, supported by improved demand in construction markets compared to the prior year.
Financials
DuPont had cash and cash equivalents of $1,503 million at the end of the quarter, down around 70% year over year. Long-term debt was $7,168 million, down about 7.8% year over year.
The company generated operating cash flow from continuing operations of $527 million in the second quarter.
Outlook
DuPont has revised its financial outlook for the year, raising the company’s projections for net sales, operating EBITDA and adjusted EPS. The company now anticipates full-year 2024 net sales to be $12.45 billion, operating EBITDA to be $3.085 billion and adjusted EPS to be $3.75 per share, based on the midpoint of the updated guidance ranges.
For the third quarter of 2024, DuPont expects a return to year-over-year organic sales growth, led by the Electronics & Industrial segment. Sales and earnings growth in the Water & Protection segment are anticipated to begin in the fourth quarter. The company forecasts net sales of $3.2 billion, operating EBITDA of $815 million and adjusted EPS of $1.03 for the third quarter.
Price Performance
DuPont’s shares have increased 4.4% in a year versus a 10.4% decline in the industry.
The Zacks Consensus Estimate for Hecla's current-year earnings is pegged at 5 cents, indicating a rise of 600% from year-ago levels. The consensus estimate for HL’s earnings has increased 25% in the past 60 days.The stock has gained nearly 2.2% in the past year. It will report second-quarter results on Aug 6.
The Zacks Consensus Estimate for FNV’s current-year earnings is pegged at $3.27. The consensus estimate for FNV’s earnings has increased by 3% in the past 60 days. FNV beat the consensus estimate in the last four quarters, with the average earnings surprise being 10.5%. It is scheduled to release second-quarter results on Aug 13.
The Zacks Consensus Estimate for ASH’s current-year earnings is pegged at $4.56, indicating a year-over-year rise of 12%. ASH’s earnings beat the Zacks Consensus Estimate in three of the last four quarters while matching it once, the average earnings surprise being 5.3%. The company’s shares have increased 5.4% in the past year. It is slated to report fiscal third-quarter results on Aug 6.
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DuPont's (DD) Earnings and Revenues Top Estimates in Q2
DuPont de Nemours, Inc. (DD - Free Report) registered a profit from continuing operations of $176 million or 40 cents per share in the second quarter of 2024. In the year-ago quarter, the company recorded a profit of $269 million or 55 cents per share.
Barring one-time items, earnings came in at 97 cents per share in the reported quarter, topping the Zacks Consensus Estimate of 85 cents.
DuPont's net sales reached $3,171 million, marking a 2% year-over-year increase and surpassing the Zacks Consensus Estimate of $3,035.8 million. Organic sales remained flat in the quarter, as a 2% increase in volume was counterbalanced by a 2% decrease in price.
The rise in volume was primarily driven by broad-based growth in the electronics sector. However, this was partially offset by year-over-year declines in industrial businesses, particularly in Water Solutions in China and medical packaging within Safety Solutions.
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 reported net sales of $1,508 million in the quarter, a 15% year-over-year increase, surpassing our estimate of $1,408.4 million. Organic sales grew 8%, driven by a 10% rise in volume, which was partially offset by a 2% decrease in price.
Semiconductor Technologies saw a more than 20% increase in organic sales, fueled by continued recovery in semiconductor demand, advancements in AI-driven technology and higher volumes for OLED materials due to new product launches. Interconnect Solutions experienced low-teens growth in organic sales, with mid-teens volume gains reflecting a broad-based recovery in consumer electronics. Industrial Solutions faced a low-double-digit decline in organic sales, primarily due to ongoing channel inventory destocking in the Kalrez and biopharma markets.
The Water & Protection unit recorded net sales of $1,391 million, a 7% decrease from the previous year, surpassing our estimate of $1,359.5 million. The decline was due to a 6% drop in organic sales and a 1% currency headwind, with organic sales reflecting a 4% decrease in volume and a 2% decrease in price.
Safety Solutions saw high-single-digit declines in organic sales, mainly due to volume reductions and continued channel inventory destocking for medical packaging products. Water Solutions also experienced high-single-digit declines in organic sales, driven by lower volumes from distributor inventory destocking in China. Conversely, Shelter Solutions achieved low-single-digit growth in organic sales, supported by improved demand in construction markets compared to the prior year.
Financials
DuPont had cash and cash equivalents of $1,503 million at the end of the quarter, down around 70% year over year. Long-term debt was $7,168 million, down about 7.8% year over year.
The company generated operating cash flow from continuing operations of $527 million in the second quarter.
Outlook
DuPont has revised its financial outlook for the year, raising the company’s projections for net sales, operating EBITDA and adjusted EPS. The company now anticipates full-year 2024 net sales to be $12.45 billion, operating EBITDA to be $3.085 billion and adjusted EPS to be $3.75 per share, based on the midpoint of the updated guidance ranges.
For the third quarter of 2024, DuPont expects a return to year-over-year organic sales growth, led by the Electronics & Industrial segment. Sales and earnings growth in the Water & Protection segment are anticipated to begin in the fourth quarter. The company forecasts net sales of $3.2 billion, operating EBITDA of $815 million and adjusted EPS of $1.03 for the third quarter.
Price Performance
DuPont’s shares have increased 4.4% in a year versus a 10.4% decline in the industry.
Image Source: Zacks Investment Research
Zacks Rank & Key Picks
DuPont currently has a Zacks Rank #4 (Sell).
Some better-ranked stocks in the Basic Materials space are Hecla Mining Company (HL - Free Report) , Franco-Nevada Corporation (FNV - Free Report) and Ashland Inc. (ASH - Free Report) . Hecla and Franco-Nevada sport a Zacks Rank #1 (Strong Buy) and Ashland carries a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Hecla's current-year earnings is pegged at 5 cents, indicating a rise of 600% from year-ago levels. The consensus estimate for HL’s earnings has increased 25% in the past 60 days.The stock has gained nearly 2.2% in the past year. It will report second-quarter results on Aug 6.
The Zacks Consensus Estimate for FNV’s current-year earnings is pegged at $3.27. The consensus estimate for FNV’s earnings has increased by 3% in the past 60 days. FNV beat the consensus estimate in the last four quarters, with the average earnings surprise being 10.5%. It is scheduled to release second-quarter results on Aug 13.
The Zacks Consensus Estimate for ASH’s current-year earnings is pegged at $4.56, indicating a year-over-year rise of 12%. ASH’s earnings beat the Zacks Consensus Estimate in three of the last four quarters while matching it once, the average earnings surprise being 5.3%. The company’s shares have increased 5.4% in the past year. It is slated to report fiscal third-quarter results on Aug 6.