DuPont’s Q4 Earnings Loom: Analysts Predict Growth Amid Challenges

DuPont de Nemours, Inc. (DD), headquartered in Wilmington, Delaware, stands as a leading specialty chemical firm known for its technology-driven materials, ingredients, and solutions. With a market capitalization of $30.4 billion, the company operates across the Americas, Indo-Pacific, Europe, and beyond. Investors await DuPont’s Q4 earnings announcement scheduled for Tuesday, February 4, before the market opens.

Positive Earnings Outlook Despite Market Headwinds

Analysts anticipate that DuPont will report earnings of $0.98 per share, marking a 12.6% increase from $0.87 per share in the same quarter last year. Notably, DuPont has consistently exceeded Wall Street’s adjusted EPS forecasts for four consecutive quarters. In the previous quarter, the company reported an adjusted EPS of $1.18, surpassing estimates by 13.5%.

Yearly Projections Suggest Continued Growth

For the full year ending December 2024, analysts expect an adjusted EPS of $3.91, a 12.4% rise from the $3.48 reported in fiscal 2023.

Stock Performance and Market Comparisons

Despite its positive earnings expectations, DD stock has fallen 4.6% over the past year. This contrasts sharply with the S&P 500 Index’s gain of 21.8% and the slight decline of the Materials Select Sector SPDR Fund (XLB) in the same period.

Challenges Affecting DuPont’s Performance

DuPont’s struggles compared to the broader market arise from slower-than-expected revenue growth in critical sectors such as electronics and materials. Rising raw material costs and supply chain disruptions have likely pressured profit margins, and broader economic factors like inflation and geopolitical risks have added to the challenges.

Recent Earnings Boost Investor Confidence

On November 5, after sharing its Q3 earnings, DD shares jumped over 4%. The company posted net sales of $3.2 billion, a 4.4% year-over-year increase. Moreover, adjusted EPS rose by 28.3% from the previous year to reach $1.18, leading DuPont to raise its full-year adjusted EPS guidance to $3.90.

Analysts Hold a Moderately Positive Outlook

The consensus on DD stock is moderately bullish, earning a “Moderate Buy” rating. Of the 16 analysts covering DuPont, nine recommend a “Strong Buy,” one suggests a “Moderate Buy,” four favor a “Hold,” one advises a “Moderate Sell,” and the remaining analyst has a “Strong Sell” rating.

Currently, DD’s average price target stands at $99.15, indicating a potential upside of 36.4% from current market prices.

On the date of publication, Kritika Sarmah did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information, please view the Barchart Disclosure Policy here.

The views and opinions expressed herein are those of the author and do not necessarily reflect those of Nasdaq, Inc.