Written by Brenda Nakalema

DuPont Beats Earnings Estimates, Plus Stock Rises as Demand Holds

Materials science giant DuPont de Nemours (ticker: DD) released its second-quarter earnings that topped Wall Street expectations. Guidance was in …

du pont beats earnings
FILE PHOTO: A DuPont logo is pictured on the research center in Meyrin near Geneva August 4, 2009. REUTERS/Denis Balibouse//File Photo

Materials science giant DuPont de Nemours (ticker: DD) released its second-quarter earnings that topped Wall Street expectations. Guidance was in line with expectations as well. The stock was rising as investors relaxed over the demand issue.

DuPont reported 88 cents adjusted earnings per share from $3.3 billion in sales. The stock climbed over 3% in premarket trading on Tuesday. S&P 500 and Dow Jones Industrial Average futures dropped 0.7% and 0.5%, respectively.

Wall Street had estimated roughly 75 cents in the second-quarter per-share earnings from $3.25 billion in sales. The company reported 82 cents per share earnings from $3.27 billion in sales in its first quarter.

“We delivered second-quarter financial results ahead of expectations by maintaining a disciplined and clear-cut focus on pricing decisions and operational excellence in the face of continued global supply chain logistics challenges and ongoing inflationary pressure,” announced CEO Ed Breen. “Underlying demand during the quarter in our main end-markets remained strong.”

In the future, DuPont expects to make roughly 81 cents a share on $3.3 billion in sales in the third quarter. Wall Street projections sit at 90 cents on $3.4 billion in sales.

Despite that fact, full-year numbers align with Wall Street consensus estimates. This year, the company expects to earn roughly $3.35 a share on $13.2 billion in sales. In contrast, Wall Street projects approximately $3.36 a share on $13.3 billion in sales.

Options markets seem to indicate that DuPont shares will move about 4% up or down following earnings. Shares have moved up or down, following the previous four quarterly reports. Shares have gained three times and dropped once over that time span.

DuPont exceeded Wall Street estimates in each of those four quarters.

Coming into the earnings call, DuPont shares have declined 26% this year, worse than the 14% and 10% comparable respective returns of the S&P 500 and Dow Jones Industrial Average.