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Dow's Q4 Earnings and Revenues Miss Estimates on Lower Prices
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Dow Inc. (DOW - Free Report) recorded a loss (on a reported basis) of $53 million or 8 cents per share in fourth-quarter 2024, narrower than a loss of $105 million or 15 cents per share a year ago.
On an adjusted basis (barring one-time items), DOW logged break-even earnings per share for the reported quarter, compared with 43 cents a year ago. The figure missed the Zacks Consensus Estimate of 23 cents.
Find the latest EPS estimates and surprises on Zacks Earnings Calendar.
Dow recorded net sales of $10,405 million for the quarter, down 2% year over year. It also missed the Zacks Consensus Estimate of $10,427.5 million. The top line was impacted by lower sales in the Packaging & Specialty Plastics segment. DOW faced headwinds from continued soft macroeconomic conditions in the reported quarter.
Volumes were up 1% year over year in the reported quarter driven by gains most regions, marking the fifth straight quarter of year-over-year volume growth. Local prices fell 3% year over year in the quarter with declines across all segments.
Packaging & Specialty Plastics: The division’s sales fell 6% year over year to $5,315 million in the reported quarter. The figure was below our estimate of $5,525.4 million. Volumes were down 1% year over year as higher polyethylene demand was more than offset by reduced merchant hydrocarbons and non-recurring licensing revenues. Local prices fell 5% due to reduced functional polymers and polyethylene prices.
Industrial Intermediates & Infrastructure: Sales for the unit were flat year over year at $2,948 million. The figure was below our estimate of $2,961.9 million. Local prices were down 1% in the quarter. Volumes rose 1% on improved supply availability in Industrial Solutions, partly masked by reduced volumes in polyurethanes & construction chemicals.
Performance Materials & Coatings: Revenues from the division rose 4% year over year to $1,965 million. The figure was below our estimate of $2,055.9 million. Volumes rose 5% while local prices went down 2%. Volumes increased on gains in all businesses.
DOW’s FY24 Results
Revenues for the full year were $43 billion, down roughly 4% year over year. Dow recorded earnings of $1.57 per share for 2024, up from 82 cents a year ago.
DOW’s Financials
Dow had cash and cash equivalents of $2,189 million at the end of 2024, down around 27% from the prior year. Long-term debt was $15,711 million, up around 5% year over year.
Cash provided by operating activities from continuing operations was $811 million in the reported quarter, down from $1,628 million in the prior-year quarter.
Dow also returned $492 million to shareholders in the reported quarter through dividends. For 2024, it returned $2.5 billion, comprised of $2 billion in dividends and $0.5 billion in share buybacks.
Dow’s Outlook
Moving ahead, Dow said that it expects to gain from the completion of its near-term incremental growth projects and increased focus on operational discipline in 2025. It is optimistic to see further increase in demand in attractive end markets such as packaging, energy and electronics. DOW expects its strong balance sheet and differentiated portfolio to allow it to deliver on its capital allocation priorities.
The company is taking actions to cut costs by $1 billion to drive margins. It expects to achieved the majority of the cost savings through $500-$700 million reduction in direct costs and reduced labor costs, including through a workforce reduction of around 1,500 roles globally. DOW is also reducing 2025 capital spending plans by $300-$500 million. The move is in response to ongoing macroeconomic challenges and to support its long-term growth targets.
DOW Stock’s Price Performance
DOW’s shares are down 23.4% in a year compared with the Zacks Chemicals Diversified industry’s 0.2% decline.
Image Source: Zacks Investment Research
DOW’s Zacks Rank & Other Key Picks
DOW currently carries a Zacks Rank #5 (Strong Sell).
Ingevity is scheduled to release fourth-quarter results on Feb.18. The Zacks Consensus Estimate for NGVT’s fourth-quarter earnings is pegged at 12 cents. NGVT surpassed the Zacks Consensus Estimate in three of the trailing four quarters while missing once. It has a trailing four-quarter earnings surprise of 95.4%, on average.
Sylvamo is slated to release fourth-quarter results on Feb.12. The consensus estimate for SLVM’s fourth-quarter earnings is pegged at $1.84. It surpassed the Zacks Consensus Estimate for earnings in each of the last four quarters at an average of 16.7%.
Nutrien is scheduled to release fourth-quarter results on Feb.19. The Zacks Consensus Estimate for NTR’s fourth-quarter earnings is pegged at 33 cents. NTR has gained around 6.5% in the past year.
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Dow's Q4 Earnings and Revenues Miss Estimates on Lower Prices
Dow Inc. (DOW - Free Report) recorded a loss (on a reported basis) of $53 million or 8 cents per share in fourth-quarter 2024, narrower than a loss of $105 million or 15 cents per share a year ago.
On an adjusted basis (barring one-time items), DOW logged break-even earnings per share for the reported quarter, compared with 43 cents a year ago. The figure missed the Zacks Consensus Estimate of 23 cents.
Find the latest EPS estimates and surprises on Zacks Earnings Calendar.
Dow recorded net sales of $10,405 million for the quarter, down 2% year over year. It also missed the Zacks Consensus Estimate of $10,427.5 million. The top line was impacted by lower sales in the Packaging & Specialty Plastics segment. DOW faced headwinds from continued soft macroeconomic conditions in the reported quarter.
Volumes were up 1% year over year in the reported quarter driven by gains most regions, marking the fifth straight quarter of year-over-year volume growth. Local prices fell 3% year over year in the quarter with declines across all segments.
Dow Inc. Price, Consensus and EPS Surprise
Dow Inc. price-consensus-eps-surprise-chart | Dow Inc. Quote
Dow’s Segment Highlights
Packaging & Specialty Plastics: The division’s sales fell 6% year over year to $5,315 million in the reported quarter. The figure was below our estimate of $5,525.4 million. Volumes were down 1% year over year as higher polyethylene demand was more than offset by reduced merchant hydrocarbons and non-recurring licensing revenues. Local prices fell 5% due to reduced functional polymers and polyethylene prices.
Industrial Intermediates & Infrastructure: Sales for the unit were flat year over year at $2,948 million. The figure was below our estimate of $2,961.9 million. Local prices were down 1% in the quarter. Volumes rose 1% on improved supply availability in Industrial Solutions, partly masked by reduced volumes in polyurethanes & construction chemicals.
Performance Materials & Coatings: Revenues from the division rose 4% year over year to $1,965 million. The figure was below our estimate of $2,055.9 million. Volumes rose 5% while local prices went down 2%. Volumes increased on gains in all businesses.
DOW’s FY24 Results
Revenues for the full year were $43 billion, down roughly 4% year over year. Dow recorded earnings of $1.57 per share for 2024, up from 82 cents a year ago.
DOW’s Financials
Dow had cash and cash equivalents of $2,189 million at the end of 2024, down around 27% from the prior year. Long-term debt was $15,711 million, up around 5% year over year.
Cash provided by operating activities from continuing operations was $811 million in the reported quarter, down from $1,628 million in the prior-year quarter.
Dow also returned $492 million to shareholders in the reported quarter through dividends. For 2024, it returned $2.5 billion, comprised of $2 billion in dividends and $0.5 billion in share buybacks.
Dow’s Outlook
Moving ahead, Dow said that it expects to gain from the completion of its near-term incremental growth projects and increased focus on operational discipline in 2025. It is optimistic to see further increase in demand in attractive end markets such as packaging, energy and electronics. DOW expects its strong balance sheet and differentiated portfolio to allow it to deliver on its capital allocation priorities.
The company is taking actions to cut costs by $1 billion to drive margins. It expects to achieved the majority of the cost savings through $500-$700 million reduction in direct costs and reduced labor costs, including through a workforce reduction of around 1,500 roles globally. DOW is also reducing 2025 capital spending plans by $300-$500 million. The move is in response to ongoing macroeconomic challenges and to support its long-term growth targets.
DOW Stock’s Price Performance
DOW’s shares are down 23.4% in a year compared with the Zacks Chemicals Diversified industry’s 0.2% decline.
DOW’s Zacks Rank & Other Key Picks
DOW currently carries a Zacks Rank #5 (Strong Sell).
Better-ranked stocks in the Basic Materials space are Ingevity Corporation (NGVT - Free Report) , Sylvamo Corporation (SLVM - Free Report) and Nutrien Ltd. (NTR - Free Report) . While NGVT and SLVM carry a Zacks Rank #1 (Strong Buy), NTR carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Ingevity is scheduled to release fourth-quarter results on Feb.18. The Zacks Consensus Estimate for NGVT’s fourth-quarter earnings is pegged at 12 cents. NGVT surpassed the Zacks Consensus Estimate in three of the trailing four quarters while missing once. It has a trailing four-quarter earnings surprise of 95.4%, on average.
Sylvamo is slated to release fourth-quarter results on Feb.12. The consensus estimate for SLVM’s fourth-quarter earnings is pegged at $1.84. It surpassed the Zacks Consensus Estimate for earnings in each of the last four quarters at an average of 16.7%.
Nutrien is scheduled to release fourth-quarter results on Feb.19. The Zacks Consensus Estimate for NTR’s fourth-quarter earnings is pegged at 33 cents. NTR has gained around 6.5% in the past year.