EI DuPont de Nemours & Co.
) started 2012 with a mixed bag in the first quarter beating the
Zacks Consensus Estimate on earnings while missing on the revenue
Highlights from the Quarter
The company's first quarter adjusted earnings of $1.61 per share
exceeded the Zacks Consensus Estimate of $1.55. The growth was
primarily driven by strong performance in Agriculture and
Performance Chemicals and the benefit of prior-year acquisitions in
Nutrition & Health and Industrial Biosciences. Profit after
including one-time items (customer claim charges of $50 million),
came in at $1.57 per share versus $1.52 in the prior-year
Revenues grew 12% year-over-year to $11,230 million, driven by
price hikes and strong sales in the Agriculture segment. However,
sales missed the Zacks Consensus Estimate of $11,239 million. The
sales volumes for Agriculture segment increased across all regions.
However, sales volumes for other segments remained flat in
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.
We have discussed the quarterly results at length here:
DuPont Beats, Reaffirms View
Agreement - Estimate Revisions
Estimates for DuPont demonstrate lack of activity over the past
week. Out of 13 analysts covering the stock, none has made any
revision in either direction for the second quarter over the past 7
days. Over the last month, 6 analysts (out of 13) lowered their
forecasts for quarter while 5 of them making upward revisions.
Estimates for 2012 reflect a somewhat similar trend with none of
the analysts altering their estimates over the past week. However,
over the last 30 days, 10 analysts (out of 16) lifted their
estimates while just 1 moved in the opposite direction,
demonstrating a strong directional agreement.
Magnitude - Consensus Estimate Trend
Estimates for the second quarter and fiscal 2012 did not show
any movement over the past week. However, over the last 30 days,
estimate for the second quarter dropped by a penny and increased by
5 cents for fiscal 2012. The current Zacks Consensus Estimate for
the second quarter and fiscal 2012 are $1.47 and $4.31,
Neutral on DuPont
DuPont, a global chemical and life sciences company, focuses on
acquisitions and joint venture to expand its market presence and
product portfolio. The company, in February 2012, signed a
strategic agreement with Suntech Power Holdings Co., Ltd. to
increase the supply of photovoltaic materials and technologies for
the growing global market for solar energy.
DuPont also acquired the remaining 28% of the Solae, LLC joint
venture from Bunge. The acquisition will help the company to expand
its position in the food ingredients market.
DuPont also remains committed to providing differentiated and
innovative products to its customers. It also remains on track to
achieve its fixed cost productivity targets of $1 billion by
However, higher raw material, energy and freight costs remain a
concern for the company. DuPont's Safety and Protection division
has a dim outlook as it has expanded its Kevlar facility, which
will lead to increased start up costs. Slowing demand in
electronics and destocking in performance polymers also keep us on
We currently have a long-term Neutral recommendation on DuPont.
The company, which competes with
The Dow Chemical Company
), maintains a Zacks #3 Rank, which translates into a short-term (1
to 3 months) Hold rating.
About Earnings Estimate Scorecard
As a PhD from MIT, Len Zacks proved over 30 years ago that
earnings estimate revisions are the most powerful force impacting
stock prices. He turned this ground breaking discovery into two
of the most celebrating stock rating systems in use today. The
Zacks Rank for stock trading in a 1 to 3 month time horizon and
the Zacks Recommendation for long-term investing (6+ months).
These "Earnings Estimate Scorecard" articles help analyze the
important aspects of estimate revisions for each stock after
their quarterly earnings announcements. Learn more about earnings
estimates and our proven stock ratings at
BASF SE (BASFY): Free Stock Analysis Report
DU PONT (EI) DE (DD): Free Stock Analysis
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