Wilmington, Delaware-based DuPont de Nemours, Inc. (DD) is a specialty chemical company providing technology-based materials, ingredients, and solutions. With a market cap of $35.5 billion, its operations span the Americas, Indo-Pacific, Europe, and America. It is expected to announce its Q3 earnings before the market opens on Tuesday, Nov. 5.
Ahead of the event, analysts expect DuPont to report a profit of $1.03 per share, up nearly 12% from $0.92 per share reported in the year-ago quarter. Moreover, the company has surpassed Wall Street’s adjusted EPS projections in each of the past four quarters. DD reported adjusted EPS of $0.97 in the last reported quarter, exceeding the consensus estimates by 14.1%.
For fiscal 2024, analysts expect DuPont to report an adjusted EPS of $3.76, up 8.1% from $3.48 in fiscal 2023. In fiscal 2025, its adjusted EPS is expected to grow 17% year-over-year to $4.40.
DD stock has gained 10.4% on a YTD basis, underperforming the S&P 500 Index’s ($SPX) 22.7% gains and the Materials Select Sector SPDR Fund’s (XLB) 12.2% returns over the same time frame.
DuPont having an extensive global presence faced notable currency headwinds during the quarter, despite which the company showcased robust performance and surpassed Wall Street’s earnings and topline estimates by a substantial margin. Its stock prices surged 4.1% after the release of its impressive Q2 earnings on Jul. 31. The company reported a 2.5% year-over-year growth in net sales, reaching $3.2 billion, primarily due to the August 2023 Spectrum acquisition which offset the currency headwinds. It also reported a 2% increase in organic sales volumes but this was offset by the decrease in prices.
Moreover, the company reported an 8.1% growth in operating EBITDA to $798 million, driven by operating EBITDA margin expansion of 130 basis points to 25.2%. Observing the year’s first-half performance DuPont raised its full-year guidance for net sales, operating EBITDA, and adjusted EPS, bolstering investor confidence.
The consensus opinion on DD stock is moderately bullish, with an overall “Moderate Buy” rating. Out of the 16 analysts covering the stock, nine recommend “Strong Buy,” one advises “Moderate Buy,” four suggest “Hold,” one advocate “Moderate Sell,” and one has a “Strong Sell” rating. As of writing, DD is trading below the mean price target of $97.15.
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