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.
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
-
How to Leave Different Amounts to Adult Children Without Causing a RiftHere’s how to leave different amounts to adult children without causing a family rift.
-
My Retirement Learning Curve, 1 Year InA retiree checks in with what they wish they knew early on and what they've changed about their plan one year in.
-
Introducing Your CD's Edgier Cousin: The Market-Linked CDTraditional CDs are a safe option for savers, but they don't always beat inflation. Should you try their counterparts, market-linked CDs, for better returns?
-
Introducing Your CD's Edgier Cousin: The Market-Linked CD
Traditional CDs are a safe option for savers, but they don't always beat inflation. Should you try their counterparts, market-linked CDs, for better returns?
-
'Humbug!' Say Consumers, Despite Hot GDP: Stock Market Today"The stock market is not the economy," they say, but both things are up. Yet one survey says people are still feeling down in the middle of this complex season.
-
The SEC Is Concerned for Older Investors and Retirement Savers. Here's What You Should Know.The SEC focusing on older investors, retirement and college savers, and private securities. Here's how those changes impact you.
-
Why You Should Pay Attention to Company GuidanceUnderstanding how corporate profit forecasts affect analysts’ estimates and stock ratings can help you make investment decisions.
-
How to Protect Yourself and Others From a Troubled Adult Child: A Lesson from Real LifeThis case of a violent adult son whose parents are in denial is an example of the extreme risks some parents face if they neglect essential safety precautions.
-
To Build Client Relationships That Last, Embrace SimplicityAs more automation becomes the norm, you can distinguish yourself as a financial professional by using technology wisely and prioritizing personal touches.
-
Client Demand Is Forcing Financial Advisers to Specialize: How to DeliverThe complexity of wealthy clients' needs — combined with AI and consumer demand — suggests the future of financial planning belongs to specialized experts.
-
Stocks Rise to the Spirit of the Season: Stock Market TodayInvestors, traders and speculators are beginning to like the looks of a potential year-end rally.
