Chemical and industrial products behemoth
E. I. du Pont de Nemours and Company
) is scheduled to report its second-quarter 2012 results before the
market opens on Tuesday, July 24. The Zacks Consensus Estimate for
earnings for the quarter is $1.46 per share, representing an
estimated year-over-year increase of 6.83%.
With respect to earnings surprises, the company has surpassed the
Zacks Consensus Estimate in the trailing four quarters. This is
reflected in the average positive earnings surprise of 9.04%.
First Quarter Recap
DuPont reported earnings of $1.61 per share in the first quarter of
2012. The results exceeded the Zacks Consensus Estimate of $1.55.
Sales in the first quarter grew 12% year over year to $11.23
billion, driven by strong performance in Agriculture and
Performance Chemicals, price hikes, and the benefit of prior-year
acquisitions in Nutrition & Health and Industrial Biosciences.
Sales volumes for Agriculture segment increased across all regions.
However, sales volumes for other segments remained flat in Asia.
DuPont reiterated its full-year 2012 earnings outlook of $4.20 to
$4.40 per share, an increase of 7% to 12% compared with 2011,
excluding significant items.
Estimate Revisions Trend
Estimates for DuPont show limited movements over the past week.
Over the last 7 days, there has been no upward revision in the
second quarter estimate by any of the 14 analysts. However, 2
analysts have decreased their forecasts over the same period. A
similar trend applies for 2012, with none of the 16 analysts
increasing estimates while 2 analysts revising their estimates in
the opposite direction.
Estimates for 2012 demonstrate a negative bias over the last 30
days with 8 analysts having lowered their forecasts with none
taking the opposite route. For the second quarter, estimates are
negatively inclined over the past month with 3 analysts lowering
their forecasts coupled with one upward revision.
Estimates for both the second quarter and 2012 have declined by a
penny over the last week. Over the last month, estimates for the
second quarter and 2012 have decreased by 1 cent and 4 cents,
respectively. The current Zacks Consensus Estimates for 2012 is
Despite softness in the consumer electronics segment, DuPont
delivered strong results in the first quarter. The company also
faced some economic headwinds in the quarter. Sales from its
nutrition and health business jumped two fold in the first quarter,
primarily driven by the acquisition of Danisco's enzyme
Also, markets for the company's agriculture and food businesses
continue to be strong, especially, with a strong planting season in
Latin America. However, DuPont faces stiff competition from
The Dow Chemical Company
), in addition to weakness in the housing and construction markets.
Moreover, sluggish economic conditions might prove to be headwinds
for the company going forward.
BASF SE (BASFY): Free Stock Analysis Report
DU PONT (EI) DE (DD): Free Stock Analysis
DOW CHEMICAL (DOW): Free Stock Analysis Report
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Currently, we have a long-term (more than 6 months) Neutral
recommendation on DuPont. The stock currently holds a Zacks #4
Rank, reflecting a short-term (1 to 3 months) Sell rating.