DuPont stock buoyed by $1B buyback, earnings
Dupont De Nemours (DD) shares rose sharply after announcing a $1 billion buyback program and a dividend increase. The chemical giant missed fourth quarter revenue estimates but analysts note the free cash flow is a silver lining for the company.
Yahoo Finance’s Julie Hyman and Josh Lipton weigh in on these numbers.
Editor's note: This article was written by Eyek Ntekim
Video Transcript
JOSH LIPTON: And one final one, let's take out shares of DuPont. They are higher today that is despite mixed earnings. Chemicals giant approved a new $1 billion buyback program, so that was part of the story. So Q4 profit beats looks like Julie, adjusted EPS clocks in $0.87. Street was close to $0.85. Did get some capital return news raised the dividend, announced new share repurchase program, that always helps.
Remember, this news comes after that sell off we saw a couple of weeks ago when they gave that Q1 profit warning we talked about at the time. In part, at that point, they were talking about China weakness, right?
JULIE HYMAN: Exactly. And that's still a concern but maybe that was a concern that got priced in to some extent. It looks like analysts are also pointing to the free cash flow as something that is better than estimated. In fact, Steve Tusa, long time industrials analyst for JP Morgan, said that that's the lone positive, is that free cash flow beat expectations there. And so that's another thing that people are pointing to in addition to that buyback that's helping to some extent.
JOSH LIPTON: Stocks still in the red this year and over the past 12 months, by the way.
