DuPont Earnings Cheat Sheet: Another Solid Sales Quarter
S&P 500 (NYSE:SPY) component E. I. du Pont de Nemours and Company (DuPont) (NYSE:DD) reported its results for the second quarter. E.I. du Pont de Nemours & Company offers products and services for markets including agriculture and food, building and construction, electronics and communications, general industrial, and transportation.
E. I. du Pont de Nemours and Company (DuPont Earnings Cheat Sheet for the Second Quarter
Results: Net income for E. I. du Pont de Nemours and Company (DuPont) rose to $1.22 billion ($1.29 per share) vs. $1.16 billion ($1.26 per share) in the same quarter a year earlier. This marks a rise of 5.1% from the year earlier quarter.
Revenue: Rose 19.1% to $10.26 billion from the year earlier quarter.
Actual vs. Wall St. Expectations: DD reported the adjusted net income of $1.37 per share. By that measure, it beat the mean analyst estimate of $1.33 per share. It beat the average revenue estimate of $9.86 billion.
Quoting Management: “Our strong second-quarter sales growth across all segments and regions resulted from consistent global execution and customer-focused innovation,” said DuPont Chair and CEO Ellen Kullman. “We are increasing our earnings outlook for 2011 based on strong performance year-to-date and confidence in our business plans for the second half of the year. Longer term, we expect additional compelling growth opportunities across our businesses stemming from science-powered innovations and collaboration, including the integration of Danisco’s world-class enzymes, fermentation and specialty food ingredients capabilities with DuPont’s strong industrial biosciences and nutrition & health offerings.”
The company has enjoyed double-digit year-over-year percentage revenue growth for the past five quarters. Over that span, the company has averaged growth of 15.8%, with the biggest boost coming in the second quarter of the last fiscal year when revenue rose 20.5% from the year earlier quarter.
Gross margin shrank 0.6 percentage point to 29.9%. The contraction appeared to be driven by increased costs, which rose 20.2% from the year earlier quarter while revenue rose 19.1%.
The company has now seen net income rise in two straight quarters. In the first quarter, net income rose 26.7% from the year earlier.
Competitors to Watch: The Dow Chemical Company (NYSE:DOW), FMC Corporation (NYSE:FMC), PPG Industries, Inc. (NYSE:PPG), 3M Company (NYSE:MMM), Honeywell Intl. Inc. (NYSE:HON), General Electric (NYSE:GE), Rockwood Holdings, Inc. (NYSE:ROC), Monsanto Company (NYSE:MON), PolyOne Corporation (NYSE:POL), and Ashland Inc. (NYSE:ASH).
(Source: Xignite Financials)