) is set to release its first-quarter 2014 results before the
opening gong on Apr 17.
In the last quarter, the chemical and industrial products
giant racked up a roughly 7.3% positive earnings surprise on
strength in its fast-growing agriculture business. Let's see how
things are shaping up for this announcement.
Factors to Consider this Quarter
DuPont is expected to see continued strength in its
agriculture business. Healthy demand for its corn hybrids and
strong growth in crop protection are expected to continue in the
first quarter, supported by new products.
Moreover, DuPont should also benefit from its aggressive
cost-cutting initiatives. The company expects roughly $400-$450
million in cost savings from its restructuring and productivity
improvement actions this year.
However, DuPont's performance chemicals business remains a
weak link. Demand of titanium dioxide (TiO2), which is used to
give paint and other coatings a white hue, remains
While DuPont is spinning off the struggling performance
chemicals unit (expected to close by first-half 2015), lower TiO2
pricing is expected to drag earnings for the division in the
first quarter. Weak TiO2 pricing is expected to remain a headwind
in the near term.
Our proven model does not conclusively show that DuPont is
likely to beat the Zacks Consensus Estimate in the first quarter.
That is because a stock needs to have both a positive
(Expected Surprise Prediction) and a Zacks Rank of #1, 2 or 3 for
this to happen. That is not the case here, as you will see
ESP for DuPont is 0.00%. This is because both the Most Accurate
Estimate and the Zacks Consensus Estimate are pegged at
Zacks Rank #3 (Hold):
DuPont's Zacks Rank #3 when combined with an ESP of 0.00% makes
surprise prediction difficult. We caution against stocks with
Zacks Ranks #4 and #5 (Sell rated stocks) going into the earnings
announcement, especially when the company is seeing negative
estimate revisions momentum.
Other Stocks to Consider
Here are some other chemical stocks you may want to consider
as our model shows they have the right combination of elements to
post an earnings beat this quarter:
Kronos Worldwide, Inc.
) has earnings ESP of +8.33% and holds a Zacks Rank #2 (Buy).
LyondellBasell Industries NV
) has earnings ESP of +5.26% and sports a Zacks Rank #2
) has earnings ESP of +2.50% and retains a Zacks Rank #2
DU PONT (EI) DE (DD): Free Stock Analysis
HUNTSMAN CORP (HUN): Free Stock Analysis
KRONOS WORLDWD (KRO): Free Stock Analysis
LYONDELLBASEL-A (LYB): Free Stock Analysis
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