The chart below shows how DOW performed 10 days before and after its earnings report, based on data from the past quarters. Typically, DOW sees a +2.14% change in stock price 10 days leading up to the earnings, and a +0.72% change 10 days following the report. On the earnings day itself, the stock moves by -0.68%. This data can give you a slight idea of what to expect for the next quarter's release.
Positive
Sustained Volume Growth: 5th consecutive quarter of year over year volume growth despite weak macroeconomic conditions.
Sales and EBIT Performance: Net sales for the full year reached $43 billion, with operating EBIT of $2.6 billion and a year over year volume growth of 3% excluding merchant hydrocarbon sales.
Cash Flow Analysis: Cash flow from continuing operations was $811 million, resulting in free cash flow of $44 million for the quarter.
Shareholder Returns Commitment: Returns to shareholders totaled $492 million in dividends during the quarter, reflecting a strong commitment to shareholder returns.
Asset Sale Proceeds: The sale of a minority stake in select U.S. Gulf Coast infrastructure assets is expected to generate cash proceeds of up to $3 billion, enhancing financial flexibility.
Negative
Net Sales Decline: Net sales decreased by 2% year over year to $10.4 billion, indicating ongoing pricing pressure across all operating segments.
Stagnant Operating EBITDA: Operating EBITDA remained flat at $1.2 billion compared to the previous year, reflecting stagnant profitability amid challenging market conditions.
Cash Flow Challenges: Cash flow from continuing operations was $811 million, resulting in a meager free cash flow of only $44 million, highlighting cash generation difficulties.
Strategic Asset Review: The company announced a strategic review of select European assets due to structurally challenged demand, indicating potential future impairments or divestitures.
Cost Reduction Strategies: Cost management actions include a targeted reduction of $1 billion in costs and a CapEx reduction of $300 million to $500 million, reflecting a need to adapt to prolonged economic downturns.
Earnings call transcript: Dow's Q4 2024 results miss forecasts, stock steady
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