DuPont (DD) Gears Up for Q3 Earnings: What's in the Cards?
DuPont de Nemours, Inc. DD is scheduled to come up with third-quarter 2023 results, before the opening bell on Nov 1.
The company surpassed the Zacks Consensus Estimate in each of the trailing four quarters. In this timeframe, it delivered an earnings surprise of 5%, on average. It posted an earnings surprise of 2.4% in the last reported quarter.
DuPont is likely to have benefited from firm demand in several industrial markets and its pricing and productivity actions in the third quarter. However, its results are likely to reflect the impacts of demand softness in the water business.
DuPont’s shares are up 26.1% over a year compared with 5.8% 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 third quarter for DuPont is currently pinned at $3,147.6 million, suggesting an expected year-over-year decline of 5.1%.
For the third quarter, the company sees net sales of roughly $3,150 million. Adjusted earnings per share for the quarter are projected at roughly 84 cents.
Some Factors to Watch For
DuPont is expected to have witnessed healthy underlying demand in several industrial end markets in the quarter to be reported. Demand is expected to have remained steady in aerospace, automotive and healthcare sectors. The Spectrum Plastics Group acquisition is also likely to have contributed to its top line in the third quarter.
The company is also likely to have benefited from its cost and productivity actions in the to-be-reported quarter. Its structural cost actions are likely to have contributed to its bottom line in the quarter.
DuPont is also expected to have gained from its pricing actions. It also continues to implement strategic price increases in the wake of raw material and energy cost inflation. These actions are likely to have supported its results in the third quarter.
However, the company’s water business is expected to have faced challenges from the slowdown in China. Softer demand in China resulting from the slowdown in the industrial economy is likely to have affected this business. The softness in construction end-markets is also likely to have impacted the shelter solutions business within the Water & Protection segment. Also, customer de-stocking in shelter solutions is expected to have continued through the third quarter.
Our estimate for the company’s Electronics & Industrial segment is pinned at $1,341 million, indicating an 11.3% year over year decline. The same for the Water & Protection unit is pegged at $1,458.1 million, suggesting a 5% year over year decline.
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 +0.25%. The Zacks Consensus Estimate for the third quarter is currently pegged at 84 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 #4 (Sell).
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:
Axalta Coating Systems Ltd. AXTA, scheduled to release earnings on Nov 1, has an Earnings ESP of +5.39% and carries a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.
The consensus estimate for AXTA’s earnings for the third quarter is currently pegged at 38 cents.
CF Industries Holdings, Inc. CF, slated to release earnings on Nov 1, has an Earnings ESP of +4.79% and carries a Zacks Rank #3 at present.
The consensus mark for CF’s third-quarter earnings is currently pegged at 94 cents.
Kinross Gold Corporation KGC, scheduled to release third-quarter earnings on Nov 8, has an Earnings ESP of +2.96%.
The Zacks Consensus Estimate for Kinross' earnings for the third quarter is currently pegged at 10 cents. KGC currently carries a Zacks Rank #3.
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DuPont de Nemours, Inc. (DD) : Free Stock Analysis Report
CF Industries Holdings, Inc. (CF) : Free Stock Analysis Report
Kinross Gold Corporation (KGC) : Free Stock Analysis Report
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