DuPont (DD) Announces Preliminary Q4 Results & Q1 2024 Outlook
DuPont de Nemours, Inc. DD released preliminary financial results for the fourth quarter and full year ending Dec 31, 2023, along with an initial outlook for the first quarter of 2024.
For the fourth quarter, net sales are projected to be around $2.9 billion, with operating EBITDA reaching approximately $715 million, per preliminary estimates. The company anticipates a loss from continuing operations in the range of $220-$370 million. Adjusted earnings per share (EPS) are expected in the range of 85-87 cents. Cash provided by operating activities from continuing operations is estimated at about $640 million. Adjusted free cash flow is anticipated to be around $500 million.
Looking at full-year 2023, DuPont projects net sales of approximately $12.07 billion, with operating EBITDA reaching about $2.94 billion. Income from continuing operations is projected to be in the range of $460 million to $610 million, while EPS from continuing operations is estimated to be between 92 cents and $1.28. The company expects an adjusted EPS in the range of $3.46-$3.48. Cash provided by operating activities from continuing operations for the full year is projected to be approximately $2.19 billion and adjusted free cash flow is expected to be around $1.57 billion.
DuPont also provided its initial outlook for the first quarter of 2024. The company projects net sales to be approximately $2.8 billion for the quarter. Operating EBITDA is expected to reach around $610 million. Additionally, DuPont estimates the adjusted EPS to be within the range of 63-65 cents.
DuPont de Nemours, Inc. Price and Consensus
DuPont de Nemours, Inc. price-consensus-chart | DuPont de Nemours, Inc. Quote
DuPont commented on the challenging business environment, noting lower volumes, channel inventory destocking in industrial businesses and weak demand in China during the fourth quarter. The company acknowledged similar trends continuing into the first quarter of 2024, leading to expected sequential declines in sales and earnings.
Despite these challenges, Dupont expressed confidence in the stabilization of Semiconductor Technologies and foresees a slight sequential sales lift in the fourth quarter of 2023. DuPont implemented restructuring actions announced in November, with anticipated cost savings beginning in the first quarter of 2024.
The company expects a sequential improvement in sales in the second quarter of 2024, with a roughly 10% increase in operating EBITDA in the second quarter compared to the first. Additionally, DuPont aims for a return to year-over-year sales and earnings growth in the second half of 2024.
It's important to note that the financial results are preliminary and the final results may differ. DuPont identified a triggering event as of Dec 31, 2023, leading to an impairment analysis of the Protection reporting unit within the Water & Protection segment. Due to current market conditions, including channel inventory destocking, DuPont expects to record a non-cash goodwill impairment charge ranging from $750-$850 million in fourth-quarter 2023.
DuPont’s shares have fallen 12.7% in a year compared with a 15.3% fall recorded by the industry.
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Zacks Rank & Other Key Picks
DuPont currently carries a Zacks Rank #2 (Buy).
Some other top-ranked stocks in the Basic Materials space are Cameco Corporation CCJ, Carpenter Technology Corporation CRS and The Andersons ANDE, each sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Cameco has a projected earnings growth rate of 188% for the current year. The Zacks Consensus Estimate for CCJ’s current-year earnings has been revised upward by 12.5% in the past 60 days. The stock is up around 73.5% in a year.
The consensus estimate for CRS’s current fiscal year earnings is pegged at $3.97, indicating a year-over-year surge of 248.3%. CRS beat the Zacks Consensus Estimate in all of the last four quarters, with the average earnings surprise being 14.3%. The company’s shares have rallied 50.3% in the past year.
ANDE beat the Zacks Consensus Estimate in three of the last four quarters and missed one, with the average earnings surprise being 32.8%. The company’s shares have increased 42.1% in the past year.
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