DuPont Third Quarter Earnings Sneak Peek

S&P 500 (NYSE:SPY) component EI du Pont de Nemours (NYSE:DD) will unveil its latest earnings on Tuesday, October 23, 2012. 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.

EI du Pont de Nemours Earnings Preview Cheat Sheet

Wall St. Earnings Expectations: The average analyst estimate is for profit of 47 cents per share, a decline of 31.9% from the company’s actual earnings for the year-ago quarter. During the past three months, the average estimate has moved down from 70 cents. Between one and three months ago, the average estimate moved down. It also has dropped from 55 cents during the last month. For the year, analysts are projecting net income of $3.96 per share, a rise of 0.8% from last year.

Past Earnings Performance: The company has beaten estimates the last four quarters and is coming off a quarter where it topped forecasts by 2 cents, reporting profit of $1.48 per share against a mean estimate of net income of $1.46 per share.

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Wall St. Revenue Expectations: On average, analysts predict $8.14 billion in revenue this quarter, a decline of 11.9% from the year-ago quarter. Analysts are forecasting total revenue of $38.41 billion for the year, a rise of 1.2% from last year’s revenue of $37.96 billion.

Stock Price Performance: Between July 24, 2012 and October 17, 2012, the stock price rose $2.11 (4.4%), from $47.74 to $49.85. The stock price saw one of its best stretches over the last year between January 6, 2012 and January 18, 2012, when shares rose for eight straight days, increasing 7.4% (+$3.41) over that span. It saw one of its worst periods between May 1, 2012 and May 18, 2012 when shares fell for 14 straight days, dropping 10.7% (-$5.74) over that span.

A Look Back: In the second quarter, profit fell 3.2% to $1.18 billion ($1.25 a share) from $1.22 billion ($1.29 a share) the year earlier, but exceeded analyst expectations. Revenue rose 9.6% to $11.28 billion from $10.3 billion.

Key Stats:

On the top line, the company is looking to build on four-straight revenue increases heading into this earnings announcement. Revenue rose 30.7% in the third quarter of the last fiscal year, 8.8% in the fourth quarter of the last fiscal year and 11.9% in the first quarter before increasing again in the second quarter.

There has enjoyed solid performance recently heading into this earnings announcement with profit rising by a year-over-year average of 5.8% for the last four quarters.

Analyst Ratings: There are nine out of 16 analysts surveyed (56.3%) rating EI du Pont de Nemours a buy.

Balance Sheet Analysis: The company’s current ratio of assets to liabilities came in at 1.62 last quarter. The current ratio is an indication of a firm’s liquidity and ability to meet creditor demands and generally, for every dollar the company owes in the short term, it has that figure available in assets that can be converted to cash in the short term.

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

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