DuPont Earnings: Here’s Why Shareholders are Selling

S&P 500 (NYSE:SPY) component E. I. du Pont de Nemours and Company (DuPont) (NYSE:DD) reported a lower net income in third quarter, missing analysts’ estimates. 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.

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E. I. du Pont de Nemours and Company (DuPont) Earnings Cheat Sheet

Results: Net income for E. I. du Pont de Nemours and Company (DuPont) fell to $10 million (one cent per share) vs. $452 million (48 cents per share) a year earlier.

Revenue: Fell 9% to $7.34 billion from the year-earlier quarter.

Actual vs. Wall St. Expectations: E. I. du Pont de Nemours and Company (DuPont) reported an adjusted EPS of 32 cents per share. By that measure, the company fell short of the mean estimate of 46 cents per share. It fell short of the average revenue estimate of $11.27 billion.

Quoting Management: “Today, we are taking additional actions to improve competitiveness and accelerate market-driven innovation and growth by fine-tuning the organization, eliminating costs and expanding beyond our everyday focus on productivity,” said DuPont Chair and CEO Ellen Kullman. “We continue to execute well in many parts of the company, and certain segments are outperforming despite market volatility. Weaker than expected demand in titanium dioxide and photovoltaic markets contributed to the decline from last year’s record third-quarter earnings. We are addressing these challenges now to position ourselves for improved performance.”

Key Stats:

The company’s net income has fallen for two quarters in a row. In the second quarter, net income fell 3.2% from the year-earlier quarter.

The company fell short of forecasts after beating estimates in the previous two quarters. In the second quarter, it topped the mark by 6 cents, and in the first quarter, it was ahead by 2 cents.

Looking Forward: Over the last 30 days, analysts have not been optimistic about the company’s next-quarter performance. The average estimate for the fourth quarter is now 70 cents per share, down from 71 cents. The average estimate for the fiscal year is $4.27 per share, down from $4.32 ninety days ago.

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(Company fundamentals provided by Xignite Financials. Earnings estimates provided by Zacks)

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