DuPont (DD) Gears Up for Q3 Earnings: What's in the Offing?
DuPont de Nemours, Inc. DD is scheduled to come up with third-quarter 2021 results, before the opening bell on Nov 2. Benefits of strong demand and its cost-saving and productivity actions are expected to get reflected on its results. However, its results are likely to reflect the impacts of raw material cost inflation.
The company surpassed the Zacks Consensus Estimate in each of the trailing four quarters. In this timeframe, it delivered an earnings surprise of around 12.1%, on average. It posted an earnings surprise of 12.8% in the last reported quarter.
DuPont’s shares have gained 23.7% over a year compared with 32.4% rise 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?
For the third quarter, DuPont sees net sales in the band of $4.18-$4.23 billion. Adjusted earnings are predicted in the range of $1.11-$1.13 per share.
The Zacks Consensus Estimate for revenues for the third quarter is currently pinned at $4,093 million, suggesting an expected year-over-year decline of 19.7%.
The Zacks Consensus Estimate for the company’s Electronics & Industrial segment is pegged at $1,492 million, reflecting a 13% rise on a sequential comparison basis.
The consensus estimate for the Mobility & Materials unit stands at $1,325 million, reflecting a 4.3% sequential increase. The same for the Water & Protection division is pegged at $1,424 million, indicating a 0.8% sequential rise.
Some Factors to Watch For
The company is expected to have benefited, in the third quarter, from sustained strength in semiconductors and smartphone technologies and the healthcare market. Continued recovery in automotive, construction and industrial markets is also likely to have supported its performance. The company is likely to have witnessed continued strong demand in North American residential construction and retail channels for do-it-yourself applications along with a sustained recovery in commercial construction in the third quarter.
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.
However, the company is likely to have faced challenges from higher raw material and logistics costs in the third quarter, especially in its Mobility & Materials unit. Supply constraints for major raw materials are expected to have continued in the September quarter, affecting the company’s volumes.
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 -8.77%. The Zacks Consensus Estimate for earnings for the third quarter is currently pegged at $1.12. 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 #2.
Stocks That Warrant a Look
Here are some companies in the basic materials space you may want to consider as our model shows they have the right combination of elements to post an earnings beat this quarter:
Tronox Holdings plc TROX, scheduled to release earnings on Oct 27, has an Earnings ESP of +0.38% and carries a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Chemours Company CC, scheduled to release earnings on Nov 4, has an Earnings ESP of +1.26% and carries a Zacks Rank #2.
Albemarle Corporation ALB, scheduled to release earnings on Nov 3, has an Earnings ESP of +8.73% and carries a Zacks Rank #3.
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DuPont de Nemours, Inc. (DD) : Free Stock Analysis Report
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