DuPont de Nemours, Inc.
DD
slipped to a loss (on a reported basis) from continuing operations of 11 cents per share for third-quarter 2020 from earnings of 49 cents per share in the year-ago quarter. The bottom line in the reported quarter was hurt by impairment charges associated with non-core businesses, higher merger-related amortization expense and lower segment results.
Barring one-time items, earnings came in at 88 cents per share for the reported quarter, topping the Zacks Consensus Estimate of 77 cents.
DuPont raked in net sales of $5,096 million, down 6% from the year-ago quarter. It also surpassed the Zacks Consensus Estimate of $5,046.8 million. Growth in the Electronics & Imaging unit was more than offset by lower sales in the other segments resulting from the coronavirus pandemic.
The company saw strong demand in semiconductors, smartphones, water, Tyvek protective garments and health & wellness in the reported quarter. It also achieved $150 million in non-manufacturing costs savings in the quarter.
DuPont de Nemours, Inc. Price, Consensus and EPS Surprise
DuPont de Nemours, Inc. price-consensus-eps-surprise-chart
|
DuPont de Nemours, Inc. Quote
Segment Highlights
The company’s Electronics & Imaging segment recorded net sales of $1 billion in the reported quarter, up 7% on a year-over-year comparison basis. Organic sales rose 8% on 9% higher volumes. The growth was driven by Semiconductor Technologies that witnessed high-single digit organic growth on a year-over-year basis. Growth was also witnessed in Interconnect Solutions and Image Solutions.
At the Nutrition & Biosciences unit, sales were down 4% year over year to $1.5 billion. Organic sales also fell 4% year over year on lower volumes. The company saw growth in probiotics and home and personal care markets.
Net sales for the Transportation & Industrial division were $1 billion in the reported quarter, down 14% year over year. Organic sales fell 14% on 5% lower pricing and 9% volume decline due to lower automotive builds. However, the company saw a recovery in the automotive market from the lows witnessed during the first half of the year.
Net sales in the Safety & Construction unit were $1.2 billion, down 6% year over year. Organic sales fell 9% as 1% price improvement was offset by 10% lower volume. The company saw strong demand for Tyvek protective garments, offset by softness across aerospace, oil & gas and certain industrial markets due to the pandemic.
In the non-core reporting segment, net sales fell 23% year over year to $331 million. Organic sales declined 13%, impacted by 18% lower volumes. Prices rose 5% in the quarter.
Financials
DuPont had cash and cash equivalents of $4,008 million at the end of the quarter. Long-term debt was $21,802 million.
The company also generated operating cash flow of $1.3 billion and free cash flow of $1.1 billion in the reported quarter.
Outlook
DuPont expects adjusted earnings per share for full-year 2020 in the band of $3.17-$3.21. Net sales for the year are forecast to be between $20.1 billion and $20.2 billion.
The company also envisions additional cash generation and operating leverage across its core segments in the fourth quarter driven by additional cost savings. The company also raised its cost-savings target for 2020 to $280 million from its earlier expectation of $180 million.
Price Performance
DuPont’s shares are down 12.9% year to date compared with a 4.3% decline recorded by the
industry
.
Zacks Rank & Key Picks
DuPont currently carries a Zacks Rank #3 (Hold).
Better-ranked stocks worth considering in the basic materials space include
Agnico Eagle Mines Limited
AEM
,
Barrick Gold Corporation
GOLD
and
AngloGold Ashanti Limited
AU
.
Agnico Eagle has a projected earnings growth rate of 102.1% for the current year. The company’s shares have gained around 27% in a year. It currently sports a Zacks Rank #1 (Strong Buy). You can see
the complete list of today’s Zacks #1 Rank stocks here
.
Barrick Gold has an expected earnings growth rate of 100% for the current year. The company’s shares have surged around 52% in the past year. It currently carries a Zacks Rank #2 (Buy).
AngloGold has a projected earnings growth rate of 137.4% for the current year. The company’s shares have gained roughly 13% in a year. It currently carries a Zacks Rank #2.
Looking for Stocks with Skyrocketing Upside?
Zacks has just released a Special Report on the booming investment opportunities of legal marijuana.
Ignited by referendums and legislation, this industry is expected to blast from an already robust $17.7 billion in 2019 to a staggering $73.6 billion by 2027. Early investors stand to make a killing, but you have to be ready to act and know just where to look.
See the pot stocks we’re targeting >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days.
Click to get this free report