DuPont's (DD) Earnings and Revenues Trounce Estimates in Q1
DuPont de Nemours, Inc. DD recorded earnings (on a reported basis) from continuing operations of 89 cents per share for first-quarter 2021 against a loss of 75 cents per share in the year-ago quarter.
Barring one-time items, earnings came in at 91 cents per share for the reported quarter, topping the Zacks Consensus Estimate of 77 cents.
DuPont raked in net sales of $3,976 million, up 8% from the year-ago quarter. It also beat the Zacks Consensus Estimate of $3,811.5 million. The company saw higher organic sales across its segments in the quarter. It benefited from sustained strength in semiconductors and smartphone technologies, continued recovery in automotive and industrial markets and strong demand for water filtration technologies.
However, the company faced challenges from higher raw material and logistics costs in the quarter.
DuPont de Nemours, Inc. Price, Consensus and EPS Surprise
DuPont de Nemours, Inc. price-consensus-eps-surprise-chart | DuPont de Nemours, Inc. Quote
Segment Highlights
The company’s Electronics & Industrial segment recorded net sales of $1.3 billion in the reported quarter, up 17% on a year-over-year comparison basis. Organic sales rose 14% on 15% higher volumes. Volume growth was driven by Interconnect Solutions and Semiconductor Technologies.
Net sales in the Water & Protection unit were $1.3 billion, up 4% year over year. Organic sales rose 1% on 1% higher volume. The company saw double-digit volume growth in Water Solutions.
Net sales for the Mobility & Materials division were $1.2 billion in the reported quarter, up 11% year over year. Organic sales rose 8% on 1% higher pricing and 7% volume increase. The company saw sustained recovery in the automotive market and strong demand for specialty pastes used in consumer electronics.
Financials
DuPont had cash and cash equivalents of $4,384 million at the end of the quarter, up around 151% year over year. Long-term debt was $10,625 million, down roughly 22% year over year.
The company also generated operating cash flow of $378 million and free cash flow of $95 million in the quarter. Moreover, it returned $660 million to shareholders through share repurchases and dividends during the quarter.
Outlook
DuPont raised its guidance for net sales and adjusted earnings per share for 2021. Net sales for the year are now forecast to be between $15.7 billion and $15.9 billion, compared with $15.4 billion and $15.6 billion expected earlier.
The company also expects adjusted earnings per share for 2021 in the band of $3.60-$3.75, up from the prior view of $3.30-$3.45.
For the second quarter of 2021, DuPont sees net sales in the band of $3.925-$4.025 billion. Adjusted earnings is predicted in the range of 93-95 cents per share for the quarter.
Price Performance
DuPont’s shares are up 75.2% over a year compared with a 70.7% rise recorded by the industry.
Zacks Rank & Key Picks
DuPont currently carries a Zacks Rank #2 (Buy).
Other top-ranked stocks worth considering in the basic materials space include Nucor Corporation NUE, Dow Inc. DOW and Impala Platinum Holdings Limited IMPUY.
Nucor has a projected earnings growth rate of 228.4% for the current year. The company’s shares have rallied around 109% in a year. It currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Dow has a projected earnings growth rate of 261.5% for the current year. The company’s shares have shot up around 95% in a year. It currently sports a Zacks Rank #1.
Impala Platinum has an expected earnings growth rate of 197.6% for the current fiscal. The company’s shares have surged around 238% in the past year. It currently carries a Zacks Rank #1.
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