Corteva shares soar on Q4 earnings
Shares of agriculture company Corteva (CTVA) climbed Thursday after better-than-expected fourth quarter results. On Wednesday, Corteva reported operating profit of 15 cents per share, surpassing analyst estimates of 6 cents. Net sales also topped forecasts on robust demand.
The company attributed its upbeat guidance to hopes of steady momentum for its seed and crop protection businesses in 2024.
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Editor's note: This article was written by Angel Smith
Video Transcript
PRAS SUBRAMANIAN: Finally, let's take a look at Corteva shares. They are surging as the company sees the record-setting demand for grain oil seeds and biofuels to continue into 2024. The company also expecting continued earnings growth and margin expansion over the next two years, Julie.
So this is the seed company, agricultural chemicals as well. I remember they spun off from Dow DuPont a few years ago in 2019. And bottom line, they're talking about foreign demand driving profits. Right? So Q4 adjusted operating EBITDA, that beats. And they give a forecast here. It looks like expecting 2024 EBITDA, $3.5 to $3.7 billion. That was about in line with consensus, but good enough to send the shares higher.
JULIE HYMAN: Apparently, farmers were buying later than is typical last year. And that's one of the things that fueled them. I mean, if you look at the shares there, they saw a big slump last year. So it looks like what investors are betting on now is sort of a recovery narrative here. One analyst over at Wells Fargo says the company sees demand on the farm as steady and still strong. And also the same analysts said the company could reach 16% EBITDA growth next year. So it's that growth profile that investors are looking at today.
PRAS SUBRAMANIAN: Yeah, higher today. It did fall about 20% last year.
JULIE HYMAN: Yeah.
