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DuPont (DD) Gears Up for Q1 Earnings: What's in the Offing?

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·4 min read
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DuPont de Nemours, Inc. DD is scheduled to come up with first-quarter 2022 results, before the opening bell on May 3. Benefits of strong demand and cost-saving and productivity actions are expected to get reflected on the company’s results. However, its results are likely to reflect the impacts of raw material cost inflation and challenges in the automotive market due to the semiconductor shortage.

The company surpassed the Zacks Consensus Estimate in each of the trailing four quarters. In this timeframe, it delivered an earnings surprise of around 10.1%, on average. It posted an earnings surprise of 6.9% in the last reported quarter.

DuPont’s shares have lost 12.4% over a year compared with 5% decline recorded by the industry it belongs to.

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Let’s see how things are shaping up for this announcement.

What do the Estimates Say?

The Zacks Consensus Estimate for revenues for the first quarter for DuPont is currently pinned at $3,219 million, suggesting an expected year-over-year decline of 19.4%.

Some Factors to Watch For

The company is expected to have benefited from sustained strong global demand in semiconductors. Strong demand in the water market and sustained improvement in global industrial end-markets are also likely to have supported its performance.

DuPont is also likely to have benefited from its cost and productivity actions in the quarter to be reported. Its structural cost actions are likely to have contributed to its bottom line in the quarter.

The company is likely 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 March quarter.

However, the company is likely to have faced challenges from higher raw material and logistics costs in the first quarter. Supply constraints for major raw materials are expected to have continued in the March quarter, affecting the company’s volumes and margins. Higher manufacturing costs due to logistics cost headwinds and the Omicron variant are also expected to have weighed on its first-quarter margins.

DuPont is also expected to have witnessed volume pressure due to the softness in the automotive market resulting from the global semiconductor shortages. The chip shortage is likely to have delayed the automotive production in the first quarter. Weaker automotive production is expected to have affected DuPont’s Mobility & Materials unit in the quarter.

DuPont de Nemours, Inc. Price and EPS Surprise

DuPont de Nemours, Inc. Price and EPS Surprise
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 +0.35%. The Zacks Consensus Estimate for earnings for the first quarter is currently pegged at 67 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 #5 (Strong 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:

Allegheny Technologies Incorporated ATI, scheduled to release earnings on May 4, has an Earnings ESP of +4.55% and carries a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for Allegheny’s first-quarter earnings has been revised 4.8% upward over the past 60 days. The Zacks Consensus Estimate for ATI’s earnings for the quarter is currently pegged at 22 cents.

Westlake Corporation WLK, slated to release earnings on May 3, has an Earnings ESP of +17.30% and carries a Zacks Rank #2.

The Zacks Consensus Estimate for Westlake's first-quarter earnings has been revised 22.1% upward over the past 60 days. The consensus estimate for WLK’s earnings for the quarter is currently pegged at $4.53.

The Chemours Company CC, scheduled to release earnings on May 2, has an Earnings ESP of +3.83% and carries a Zacks Rank #3.

The Zacks Consensus Estimate for Chemours’ first-quarter earnings has been revised 2.2% upward in the past 60 days. The consensus estimate for CC’s earnings for the quarter is currently pegged at 92 cents.

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.


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Westlake Corp. (WLK) : Free Stock Analysis Report

Allegheny Technologies Incorporated (ATI) : Free Stock Analysis Report

DuPont de Nemours, Inc. (DD) : Free Stock Analysis Report

The Chemours Company (CC) : Free Stock Analysis Report

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