The Dow Chemical Earnings: Here’s Why Shares are Up Now

The Dow Chemical Company (NYSE:DOW) delivered a profit and beat Wall Street’s expectations, AND beat the revenue expectation. The revenue beat is a positive sign to shareholders seeking high growth out of the company. Shares are up 0.67%.

The Dow Chemical Company Earnings Cheat Sheet

Results: Adjusted Earnings Per Share increased 16.36% to $0.64 in the quarter versus EPS of $0.55 in the year-earlier quarter.

Revenue: Rose 0.44% to $14.58 billion from the year-earlier quarter.

Actual vs. Wall St. Expectations: The Dow Chemical Company reported adjusted EPS income of $0.64 per share. By that measure, the company beat the mean analyst estimate of $0.63. It beat the average revenue estimate of $14.48 billion.

Quoting Management: Andrew N. Liveris, Dow’s chairman and chief executive officer, stated: “Our results in the second quarter are indicative of Dow’s focus and drive to aggressively manage our portfolio and generate momentum across our enterprise – expanding margins, growing cash flow and increasing earnings, even in the midst of a slow-growth macroeconomic environment. Strong performance in Agricultural Sciences and Performance Plastics clearly demonstrates Dow’s market and technology leadership in those segments. We also are fully implementing aggressive improvement plans in those segments that do not currently meet our return on capital expectations. Our strong cash generation, our deployment of K-Dow proceeds to pay down debt and our ongoing $1.5 billion share buyback program are all focused on rewarding our shareholders – and we will continue to do so as our earnings grow.”

Key Stats (on next page)…

Revenue increased 1.35% from $14.38 billion in the previous quarter. EPS decreased 7.25% from $0.69 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 $0.56 and has not changed. For the current year, the average estimate has moved down from a profit of $2.37 to a profit of $2.36 over the last ninety days.

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