Dow Inc. (DOW), a materials science giant with a market capitalization of $21 billion, delivers advanced and sustainable solutions across industries such as packaging, infrastructure, mobility, and consumer care. Headquartered in Midland, Michigan, Dow is recognized for its innovation and scale, most notably operating the world’s largest ethylene cracker in Freeport, Texas, alongside a robust global manufacturing footprint. The company is slated to release its Q1 earnings before the market opens on Thursday, April 24.
Ahead of the event, analysts expect the materials science company to report a profit of $0.04 per share, down 92.9% from $0.56 per share in the same quarter last year. The company has surpassed Wall Street's bottom-line estimates in two of the past four quarters while missing on two other occasions.
In the most recent quarter, DOW missed the consensus EPS estimates by a 100% margin, reflecting the impact of weaker macroeconomic conditions, softer end-market demand, or operational headwinds during the period.
For the current year, analysts expect DOW to report an EPS of $1.36, down 20.5% from $1.71 in fiscal 2024. However, the EPS is expected to rebound in fiscal 2026 with a robust 60.3% year-over-year growth, reaching $2.18.
Over the past 52 weeks, DOW has dropped 53.6%, underperforming both the S&P 500 Index's ($SPX) 2.1% rise and the Materials Select Sector SPDR Fund's (XLB) 14.7% decrease over the same period.
Dow shares fell 6.1% on Jan. 30 following the release of its weaker-than-expected fourth-quarter earnings report. Its revenue declined 2% year-over-year to $10.4 billion, primarily due to lower prices across all operating segments, despite a 1% increase in sales volume. Despite the earnings miss, Dow returned $492 million to shareholders in dividends during the quarter.
Further, Dow announced a $1 billion cost-reduction initiative, including the elimination of approximately 4% of its workforce. The company also plans to reduce its 2025 capital expenditures by $300–$500 million.
Analysts' consensus view on DOW stock is cautious, with an overall "Hold" rating. Among 19 analysts covering the stock, three recommend a "Strong Buy," and 16 give a "Hold" rating.
DOW’s average analyst price target of $41.89 implies a premium of 53.5% from its prevailing price levels.
