Dow Inc. Poised for Earnings Report Amidst Tumultuous Market Conditions

Dow Inc. (DOW), a major player in materials science with a market capitalization of $21 billion, is known for its advanced and sustainable innovations across diverse sectors such as packaging, infrastructure, mobility, and consumer care. Based in Midland, Michigan, the company operates the largest ethylene cracker in the world located in Freeport, Texas, alongside a strong global manufacturing presence. Dow will announce its Q1 earnings before the market opens on Thursday, April 24.

Looking ahead, analysts predict DOW will report a profit of $0.04 per share, marking a significant decline of 92.9% from $0.56 per share during the same quarter last year. In the previous four quarters, the company managed to exceed Wall Street’s bottom-line estimates twice but fell short on two other occasions.

In its most recent quarter, DOW missed consensus EPS estimates entirely, reflecting challenges posed by weaker macroeconomic conditions, diminished end-market demand, or operational obstacles during the period.

Outlook for 2025 and 2026

For the current fiscal year, analysts anticipate DOW will report an EPS of $1.36, a 20.5% drop from $1.71 in fiscal 2024. However, projections for fiscal 2026 indicate a recovery, with anticipated robust growth of 60.3% year-over-year, bringing EPS to $2.18.

Performance Analysis

Over the last 52 weeks, DOW’s stock has decreased by 53.6%, underperforming both the S&P 500 Index, which has risen by 2.1%, and the Materials Select Sector SPDR Fund, which decreased 14.7% during the same timeframe.

On January 30, Dow shares experienced a 6.1% decline following the release of its fourth-quarter earnings report, which fell below expectations. The company reported a revenue decline of 2% year-over-year, amounting to $10.4 billion, mainly attributed to lower prices across all operating segments, despite a slight 1% increase in sales volume. However, Dow still managed to return $492 million to shareholders in dividends during the quarter.

In response to its financial challenges, Dow announced a $1 billion cost-reduction strategy, which includes cutting about 4% of its workforce. Additionally, the company plans to reduce its 2025 capital expenditures by $300 million to $500 million.

Analyst Sentiment

Analysts hold a cautious outlook on DOW stock, with an overall “Hold” rating. Out of the 19 analysts covering the stock, three recommend a “Strong Buy,” while 16 advocate for a “Hold” rating.

DOW’s average analyst price target of $41.89 suggests a potential upside of 53.5% from its current price levels.

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.

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