DuPont stock drops 12% on preliminary results, soft guidance
DuPont de Nemours (NYSE:DD) provided today a preliminary outlook for the first quarter, which sent shares lower by nearly 12%.
The company is forecasting net sales of approximately $2.8 billion, significantly below the consensus of $3.04 billion. The company also anticipates adjusted earnings per share (EPS) in the range of 63 cents to 65 cents, contrasting with the estimated 88 cents.
Factors contributing to the less favorable outlook include additional channel inventory destocking within industrial businesses and continued weak demand in China. DuPont de Nemours expects these trends to persist, anticipating sequential sales and earnings declines in the first quarter of 2024.
The projected operating EBITDA is approximately $610 million, below the consensus of $746.6 million.
«As we finished 2023, we saw additional channel inventory destocking within our industrial businesses as well as continued weak demand in China. We are seeing similar trends continue and expect sequential sales and earnings to decline in the first quarter of 2024, driven by these factors and the absence of certain discrete items which benefited fourth quarter operating EBITDA,” said Ed Breen, DuPont Executive Chairman and Chief Executive Officer.
In the preliminary fourth-quarter results, DuPont de Nemours expects adjusted EPS to be in the range of 85 cents to 87 cents, in line with the consensus. However, preliminary net sales are projected to be around $2.90 billion, slightly below the estimated $3 billion.
Moreover, the preliminary operating EBITDA is anticipated to be about $715 million, slightly lower than the estimated $744.9 million.
DuPont de Nemours said it identified a triggering event as of December 31 and plans to record an impairment
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