DuPont Reports Earnings, Revenue Beat
2022.08.02 21:10
DuPont (DD) Reports Earnings, Revenue Beat
By Sam Boughedda
DuPont (NYSE:DD) reported second-quarter earnings Tuesday, topping analyst consensus estimates.
The company posted second-quarter earnings of $0.88, $0.13 better than the analyst estimate of $0.75 on revenue of $3.3 billion versus the consensus estimate of $3.26 billion. Sales rose 7% year-over-year, with earnings rising 11% compared to last year.
DuPont said organic sales growth of 9% consisted of an 8% increase in price and a 1% increase in volume, with the price increases taken to offset the impact of cost inflation.
“We delivered second quarter financial results ahead of expectations by maintaining a disciplined focus on pricing actions and operational excellence in the face of continued global supply chain and logistics challenges and ongoing inflationary pressure,” said Ed Breen, DuPont Executive Chairman and Chief Executive Officer. “Underlying demand during the quarter in our key end-markets remained strong. Year-over-year and sequential sales and earnings growth in a volatile macro environment demonstrated the strength of our portfolio, our deep customer relationships and the leading market positions we hold globally.”
DuPont shares are down 0.75% Tuesday.
Looking ahead, the company sees fiscal 2022 earnings per share between $3.27 and $3.43, with revenue between $13 billion and $13.4 billion.
Following the report, an RBC Capital analyst released a note to clients maintaining an Outperform rating and a $81 price target on the stock.
“Overall, DD’s Q2 results were better than expected, especially in its higher-multiple Electronics and Industrial segment. However, Q3 EBITDA/EPS guidance of ~$810M/~$0.81 was ~7%/~10% below the Street’s estimates. Furthermore, DD lowered the upper end of its FY22 EBITDA/EPS guidance despite the Q2 beat. In total, we expect a flattish reaction in the stock today on the Q2 beat, lowered H2 expectations and portfolios moves (Rogers (NYSE:ROG) acquisition still expected to close in 3Q22 and M&M divestiture by year end) remain on track,” said the analyst.
