Earnings Preview: DuPont - Analyst Blog
October 24 2011 - 11:45AM
Zacks
EI DuPont de Nemours & Co. (DD) is
scheduled to report its third-quarter 2011 financial results on
Tuesday, October 25, 2011. The current Zacks Consensus Estimate for
the quarter is 56 cents a share. For the quarter under review,
revenue is $8,884 million, according to the Zacks Consensus
Estimate.
Second-Quarter 2011, a Synopsis
DuPont reported an increase in profit of $1.22 billion or $1.37
per share in the second quarter of 2011 from $1.16 billion or $1.17
per share in the same quarter of 2010. The profit exceeded the
Zacks Consensus Estimate by 4 cents per share.
The improvement in profit was attributable to higher selling
prices, increased sales volume and currency benefit, partly offset
by higher raw material, energy, and freight costs.
Sales in the quarter grew 19% to $10.3 billion, up from the
Zacks Consensus Estimate of $9.95 billion. The increase in sales
reflected a rise of 2% in sales volume, an increase of 11% in local
price, 3% currency benefit and 3% net increase from portfolio
changes. Sales in the developing markets rose 29%.
Fiscal 2011 Guidance
DuPont upgraded its full-year 2011 earnings outlook to
$3.90–$4.05 per share from its previous forecast of $3.65–$3.85 per
share. This revision was attributable to the company’s strong
earnings results, the expectation for continued global economic
growth and about $.05 per share full-year operating earnings from
Danisco on an underlying basis.
The company's estimate for the Danisco acquisition on full-year
reported earnings is at present a reduction of $.18 to $.29 per
share versus the previous estimate of $.30 to $.45 per share. The
current view is based on anticipated full-year Danisco operating
earnings of about $.05 per share and significant item charges
related to the acquisition estimated to be $.23 to $.34 per
share.
In addition to these Danisco charges, the company expects a $.03
per share significant item charge in the third quarter associated
with a licensing agreement.
Third-Quarter 2011 Consensus
Analysts considered by Zacks, expect DuPont to post
third-quarter 2011 earnings of 56 cents a share, reflecting a
growth of 39.5% from the year-ago quarter. The current Zacks
Consensus Estimates for the quarter ranges from a low of 51 cents
to a high of 60 cents.
Zacks Agreement & Magnitude
Of the 10 analysts following the stock, none of the analysts
revised their estimates in the last 7 days or in the last 30 days,
keeping the current Zacks Consensus Estimate unchanged at 56 cents
a share.
Positive Earnings Surprise History
With respect to earnings surprises, the company outdid the Zacks
Consensus Estimate in all the trailing four quarters. This is
reflected in the average earnings surprise of 21.97%, with positive
surprises in each of the quarters involved.
Recommendation
DuPont is a global chemical and life sciences company, employing
more than 60,000 people worldwide with a diverse array of product
offerings. With over 21,000 patents and 15,000 patent applications
worldwide, DuPont sells its products in diverse markets, such as
transportation, construction, apparel, agriculture, nutrition and
health, packaging and electronics markets.
DuPont faces stiff competition from BASF SE
(BASFY) and The Dow Chemical Company (DOW).
Currently, DuPont has a short-term (1 to 3 months) Zacks #3 Rank
(Hold) and a long- term Neutral recommendation.
BASF AG-ADR NEW (BASFY): Free Stock Analysis Report
DU PONT (EI) DE (DD): Free Stock Analysis Report
DOW CHEMICAL (DOW): Free Stock Analysis Report
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