Dow Chemical Earnings: Here’s Why the Stock is Rising Now

The Dow Chemical Company (NYSE:DOW) delivered a profit and beat Wall Street’s expectations, BUT came up short on beating the revenue expectation. The revenue miss is a negative sign to shareholders seeking high growth out of the company. Shares are up 2.89%.

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The Dow Chemical Company Earnings Cheat Sheet

Results: Adjusted Earnings Per Share increased 13.11% to $0.69 in the quarter versus EPS of $0.61 in the year-earlier quarter.

Revenue: Decreased 2.28% to $14.38 billion from the year-earlier quarter.

Actual vs. Wall St. Expectations: The Dow Chemical Company reported adjusted EPS income of $0.69 per share. By that measure, the company beat the mean analyst estimate of $0.61. It missed the average revenue estimate of $14.88 billion.

Quoting Management: Andrew N. Liveris, Dow’s chairman and chief executive officer, stated: “Our performance this quarter demonstrates our team’s continuing determination to deliver earnings growth, despite ongoing uncertainties in the global economy. We are aggressively managing our businesses and driving near-term execution measures – demonstrated by this quarter’s marked improvement in both margins and profitability. We continue to deliver on our plan by implementing cost and cash flow actions, paying down debt, improving return on capital and taking firm decisions on our portfolio, as evidenced by our recently announced target of $1.5 billion in proceeds from divestitures in the near term. Collectively, our proactive, execution-focused actions position Dow well to navigate ongoing challenging market conditions and deliver value to our shareholders. We expect the results of these actions to accelerate throughout the year.”

Key Stats (on next page)…

Revenue increased 3.35% from $13.92 billion in the previous quarter. EPS increased 109.09% from $0.33 in the previous quarter.

Looking Forward: Analysts have a neutral outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings is a profit of $0.7 and has not changed. For the current year, the average estimate has moved down from a profit of $2.4 to a profit of $2.34 over the last ninety days.

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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)

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