The chart below shows how DD performed 10 days before and after its earnings report, based on data from the past quarters. Typically, DD sees a -0.11% change in stock price 10 days leading up to the earnings, and a -0.13% change 10 days following the report. On the earnings day itself, the stock moves by +3.06%. This data can give you a slight idea of what to expect for the next quarter's release.
Positive
Earnings Per Share Surge: DuPont reported adjusted EPS of $1.13, exceeding expectations of $0.98, marking a 30% increase from the prior year.
Quarterly Sales Growth: Fourth quarter sales grew 7% year-over-year, driven by an 8% increase in volume, with Electronics & Industrial (E&I) and Water & Protection (W&P) segments showing strong organic growth of 10% and 6%, respectively.
Q4 Operating EBITDA Growth: Operating EBITDA for the fourth quarter reached $807 million, a 13% increase year-over-year, with an operating EBITDA margin of 26.1%, expanding 140 basis points from the previous year.
Strong Cash Generation: Transaction-adjusted free cash flow for 2024 was $1.8 billion, achieving a conversion rate of 105%, reflecting strong cash generation and working capital optimization efforts.
Sales Growth Outlook: The company anticipates mid-single-digit organic sales growth for 2025, with full-year consolidated net sales guidance of $12.8 billion to $12.9 billion, indicating continued positive momentum.
Negative
Corporate Sales Decline: Organic sales in corporate declined 7% versus the year ago period, indicating a significant downturn in this segment.
Cash Flow Efficiency Decline: Fourth quarter cash flow from operations was $564 million, which, despite being strong, reflects a decrease in cash generation efficiency compared to previous quarters due to higher CapEx and separation-related costs.
Earnings Pressure Forecast: The first quarter 2025 guidance estimates adjusted EPS of $0.95 per share, which represents a decline from the previous year's first quarter adjusted EPS of $1.13, indicating potential earnings pressure.
Sales Growth Outlook: For the full year 2025, the estimated consolidated net sales of $12.8 billion to $12.9 billion reflects a slowdown in growth expectations compared to the previous year, suggesting a challenging market environment ahead.
Currency Headwind Impact: The anticipated currency headwind of about 1% for the full year 2025 could negatively impact revenue and profitability, compounding the challenges faced in achieving growth targets.
DuPont de Nemours, Inc. (NYSE:DD) Q4 2024 Earnings Call Transcript
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