Corteva, Inc. (CTVA), incorporated in 2018 and headquartered in Indianapolis, Indiana, is a leading global seed and crop protection solution provider. With a market cap of $41.8 billion, Corteva is dedicated to advancing agriculture through innovative and sustainable practices that enhance productivity and resilience for farmers worldwide. The company is set to release its fourth-quarter earnings after the market closes on Wednesday, Feb. 5.
Ahead of this event, analysts project the agricultural chemical company to report a profit of $0.35 per share, up 133.3% from $0.15 per share in the year-ago quarter. The company beat the consensus estimates in three of the last four quarters while missing on one other occasion.
Its adjusted loss of $0.49 per share in the last quarter missed the consensus estimates by 58.1%. Corteva's quarterly loss stemmed from reduced revenues due to lower demand, pricing pressures, and higher operating expenses.
For fiscal 2024, analysts expect CTVA to report an EPS of $2.59, down 3.7% from $2.69 in fiscal 2023. Nevertheless, EPS is expected to grow 24.3% year-over-year to $3.22 in fiscal 2025.
Corteva's shares have climbed 32.1% over the past 52 weeks, outperforming the S&P 500 Index's ($SPX) 24.4% gain and significantly exceeding the Materials Select Sector SPDR Fund’s (XLB) 4.3% return over the same period.
Corteva has outperformed the broader market and its peers due to strong product innovation, a solid customer base, effective cost management, and strategic investments in sustainability, positioning the company well for long-term growth despite short-term challenges.
However, following its disappointing Q3 results on Nov. 6, the company’s shares fell 5%, with net sales dropping 10.2% year-over-year to $2.33 billion, falling short of the consensus estimate of $2.69 billion. For 2024, Corteva updated its guidance, projecting net sales of $17.0 to $17.2 billion, operating EBITDA between $3.35 and $3.45 billion, and free cash flow from $1.5 to $2.0 billion. Looking to 2025, the company anticipates net sales of $17.3 to $17.7 billion and operating EBITDA of $3.6 to $4.0 billion, reflecting a moderate growth outlook.
Analysts' consensus view on Corteva’s stock is bullish, with a "Strong Buy" rating overall. Among 18 analysts covering the stock, 12 recommend a "Strong Buy," two suggest a "Moderate Buy," and four indicate a “Hold.”
The average analyst price target for CTVA is $67.38, indicating a 10.6% potential upside from the current levels.
