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Last week, you might have seen that DuPont de Nemours, Inc. (NYSE:DD) released its annual result to the market. The early response was not positive, with shares down 6.2% to US$70.32 in the past week. DuPont de Nemours reported revenues of US$20b, in line with expectations, but it unfortunately also reported (statutory) losses of US$4.01 per share, which were slightly larger than expected. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.
Taking into account the latest results, the 14 analysts covering DuPont de Nemours provided consensus estimates of US$15.4b revenue in 2021, which would reflect a sizeable 25% decline on its sales over the past 12 months. Earnings are expected to improve, with DuPont de Nemours forecast to report a statutory profit of US$2.09 per share. In the lead-up to this report, the analysts had been modelling revenues of US$15.2b and earnings per share (EPS) of US$1.99 in 2021. The analysts seems to have become more bullish on the business, judging by their new earnings per share estimates.
There's been no major changes to the consensus price target of US$85.94, suggesting that the improved earnings per share outlook is not enough to have a long-term positive impact on the stock's valuation. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. Currently, the most bullish analyst values DuPont de Nemours at US$95.00 per share, while the most bearish prices it at US$74.00. Still, with such a tight range of estimates, it suggeststhe analysts have a pretty good idea of what they think the company is worth.
Of course, another way to look at these forecasts is to place them into context against the industry itself. We would also point out that the forecast 25% revenue decline is roughly in line with the historical trend, which saw revenues shrink 21% annually over the past five years Yet our data suggests that other companies (with analyst coverage) in the industry are expected, in aggregate, to see their revenues rise 6.3% over the coming year. It seems clear that while the revenue forecasts are all negative, DuPont de Nemours' revenue decline is expected to be less severe than that of the industry itself.
The Bottom Line
The most important thing here is that the analysts upgraded their earnings per share estimates, suggesting that there has been a clear increase in optimism towards DuPont de Nemours following these results. Fortunately, the analysts also reconfirmed their revenue estimates, suggesting sales are tracking in line with expectations - although our data does suggest that DuPont de Nemours' revenues are expected to perform worse than the wider industry. The consensus price target held steady at US$85.94, with the latest estimates not enough to have an impact on their price targets.
With that said, the long-term trajectory of the company's earnings is a lot more important than next year. At Simply Wall St, we have a full range of analyst estimates for DuPont de Nemours going out to 2025, and you can see them free on our platform here..
You still need to take note of risks, for example - DuPont de Nemours has 2 warning signs (and 1 which makes us a bit uncomfortable) we think you should know about.
This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
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