DuPont Stock Jumps After Sales, Earnings Top Expectations
DuPont stock is higher Tuesday after the materials company beat expectations for its fourth quarter and reiterated plans for its upcoming spinoff.
You are now subscribed
Your newsletter sign-up was successful
Want to add more newsletters?
Delivered daily
Kiplinger Today
Profit and prosper with the best of Kiplinger's advice on investing, taxes, retirement, personal finance and much more delivered daily. Smart money moves start here.
Sent five days a week
Kiplinger A Step Ahead
Get practical help to make better financial decisions in your everyday life, from spending to savings on top deals.
Delivered daily
Kiplinger Closing Bell
Get today's biggest financial and investing headlines delivered to your inbox every day the U.S. stock market is open.
Sent twice a week
Kiplinger Adviser Intel
Financial pros across the country share best practices and fresh tactics to preserve and grow your wealth.
Delivered weekly
Kiplinger Tax Tips
Trim your federal and state tax bills with practical tax-planning and tax-cutting strategies.
Sent twice a week
Kiplinger Retirement Tips
Your twice-a-week guide to planning and enjoying a financially secure and richly rewarding retirement
Sent bimonthly.
Kiplinger Adviser Angle
Insights for advisers, wealth managers and other financial professionals.
Sent twice a week
Kiplinger Investing Weekly
Your twice-a-week roundup of promising stocks, funds, companies and industries you should consider, ones you should avoid, and why.
Sent weekly for six weeks
Kiplinger Invest for Retirement
Your step-by-step six-part series on how to invest for retirement, from devising a successful strategy to exactly which investments to choose.
DuPont de Nemours (DD) stock jumped out of the gate Tuesday after the global chemicals company beat top- and bottom-line expectations for its fourth quarter and reiterated the date for the spinoff of its electronics business.
In the three months ending December 31, DuPont's revenue increased 6.7% year over year to $3.1 billion. Its earnings per share (EPS) rose 29.9% from the year-ago period to $1.13.
"DuPont closed out a year of strong financial performance with solid fourth-quarter results as we saw continued strength in electronics end-markets and a return to year-over-year top-line growth in Water & Protection driven by further improvement in water and medical packaging end-markets," said CEO Lori Koch in a statement.
From just $107.88 $24.99 for Kiplinger Personal Finance
Become a smarter, better informed investor. Subscribe from just $107.88 $24.99, plus get up to 4 Special Issues
Sign up for Kiplinger’s Free Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
The results topped analysts' expectations. Wall Street was anticipating revenue of $3.07 billion and earnings of 98 cents per share, according to Yahoo Finance.
In the first quarter, DuPont said it expects revenue of approximately $3.025 billion and earnings of roughly 95 cents per share. This compares to analysts' forecasts for revenue of $3.05 billion and earnings of 93 cents per share.
For the full fiscal year, DuPont expects to achieve revenue in the range of $12.8 billion to $12.9 billion and earnings of $4.30 to $4.40 per share. The midpoints of these ranges, revenue of $12.85 billion and earnings of $4.35 per share, came in below analysts' expectations for revenue of $12.9 billion and earnings of $4.40 per share.
"I am pleased with our solid fourth-quarter results which capped off a strong year of financial performance and we look to carry this momentum into 2025," said DuPont Chief Financial Officer Antonella Franzen in a statement.
DuPont's spinoff is expected to occur in November
DuPont also reiterated its intention to split off its electronics business on November 1.
"I am pleased with the progress we are making on the intended separation of our Electronics business targeted for November 1, 2025," Koch added. "We also remain excited for and confident in DuPont's value creation opportunities following the Electronics separation, centered around the high growth businesses of Water and Healthcare, along with other market-leading industrial product lines."
The company had originally planned to split into three companies – New DuPont, Electronics and Water Solutions – but changed those plans last month.
Is DuPont a buy, sell or hold?
DuPont has held its own on the price charts over the past 12 months, generating a 21% return, which is roughly in line with the S&P 500. And Wall Street sees even more upside for the materials stock.
According to S&P Global Market Intelligence, the average analyst target price for DD stock is $94.71, representing implied upside of nearly 16% to current levels. Additionally, the consensus recommendation is a Buy.
Financial services firm Jefferies is one of the most bullish outfits on the large-cap stock with a Buy rating and $116 price target.
"DuPont announced that the company intends to spin the electronics business by November 2025 (previously it was expected to separate by year-end 2025), and the water business will remain with the company," wrote Jefferies analyst Laurence Alexander in a January 16 note. "Water demand is in the early stages of a rebound, and DuPont may revisit its strategic options for water when there is evidence that the cycle has strengthened."
As for this year, Alexander believes electronics will lead DuPont's growth "given the relative strength of new fabs in China and the secular artificial intelligence tailwinds."
Related Content
-
Nasdaq Leads a Rocky Risk-On Rally: Stock Market TodayAnother worrying bout of late-session weakness couldn't take down the main equity indexes on Wednesday.
-
Quiz: Do You Know How to Avoid the "Medigap Trap?"Quiz Test your basic knowledge of the "Medigap Trap" in our quick quiz.
-
5 Top Tax-Efficient Mutual Funds for Smarter InvestingMutual funds are many things, but "tax-friendly" usually isn't one of them. These are the exceptions.
-
Nasdaq Leads a Rocky Risk-On Rally: Stock Market Today
Another worrying bout of late-session weakness couldn't take down the main equity indexes on Wednesday.
-
5 Top Tax-Efficient Mutual Funds for Smarter Investing
Mutual funds are many things, but "tax-friendly" usually isn't one of them. These are the exceptions.
-
Why Invest In Mutual Funds When ETFs Exist?Exchange-traded funds are cheaper, more tax-efficient and more flexible. But don't put mutual funds out to pasture quite yet.
-
Social Security Break-Even Math Is Helpful, But Don't Let It Dictate When You'll FileYour Social Security break-even age tells you how long you'd need to live for delaying to pay off, but shouldn't be the sole basis for deciding when to claim.
-
I'm an Opportunity Zone Pro: This Is How to Deliver Roth-Like Tax-Free Growth (Without Contribution Limits)Investors who combine Roth IRAs, the gold standard of tax-free savings, with qualified opportunity funds could enjoy decades of tax-free growth.
-
One of the Most Powerful Wealth-Building Moves a Woman Can Make: A Midcareer PivotIf it feels like you can't sustain what you're doing for the next 20 years, it's time for an honest look at what's draining you and what energizes you.
-
Stocks Make More Big Up and Down Moves: Stock Market TodayThe impact of revolutionary technology has replaced world-changing trade policy as the major variable for markets, with mixed results for sectors and stocks.
-
I'm a Wealth Adviser Obsessed With Mahjong: Here Are 8 Ways It Can Teach Us How to Manage Our MoneyThis increasingly popular Chinese game can teach us not only how to help manage our money but also how important it is to connect with other people.
