NYSE$CTVA

Corteva Inc · Q2 2021 earnings

Q2 2021 earnings · · Investor relations

Briefing

Net sales and EPS increased, driven by volume and price gains, as well as the adoption of new technologies.

Corteva reported an 8% increase in net sales and a 36% increase in EPS for the second quarter of 2021. The company's performance was driven by strong demand for its innovative products, its ability to price for value, and its focus on execution.

  • Net sales increased 8% versus the same period last year.
  • Organic sales rose 6%, with increases in most regions.
  • GAAP income from continuing operations after income taxes was $1.0 billion in second quarter 2021.
  • Operating EBITDA for the second quarter was $1.46 billion, up 18% compared to the year-ago period.

Headline financials

Total Revenue

$5.63B

Previous: $5.19B+8.4%
EPS (adj)

$1.40

Previous: $1.26+11.1%
Free Cash Flow

$970M

Previous: $760M+27.6%
Net Income

$970M

Previous: $760M+27.6%
Operating Income

$1.04B

Previous: $645M+61.9%
Gross Profit

$2.62B

Previous: $2.36B+10.8%
Cash & Equivalents

$2.86B

Previous: $2.81B+1.9%
Total Assets

$41.5B

Previous: $42.2B-1.6%

Revenue & EPS history

Corteva · Revenue · Quarterly

$5.63B

Q2 2021+8.4%vs Q2 2020
Beat estimate in 8 of 12 quarters(67%)
ActualEstimate

Revenue by segment

Corteva · $5.63B total across 2 segments · Q2 2021

  • Seed
    $3.78B+6.8%
  • Crop Protection
    $1.85B+11.7%

Forward guidance

Corteva updated its previously provided guidance for the full year 2021 – increasing sales and earnings expectations for this period.

Tailwinds

  • Corteva expects net sales in the range of $15.2 billion to $15.4 billion, which at the mid-point represents expected net sales growth of 8% for the year.
  • The Company expects Operating EBITDA to be in the range of $2.5 billion to $2.6 billion, which at the midpoint represents expected Operating EBITDA growth of 22% for the year.
  • Operating EPS is expected to be in the range of $2.00 and $2.10 per share.
  • Strength of the Company’s global footprint evident in market share gains in key markets, notably Latin America in Brazil Safrinha corn and Europe in Crop Protection
  • Driving execution on sustainable innovation, production efficiencies and transition to renewable energy sources

Headwinds

  • Failure to obtain or maintain the necessary regulatory approvals for some Corteva’s products
  • Effect of climate change and unpredictable seasonal and weather factors
  • Effect of volatility in Corteva’s input costs
  • Risks related to COVID-19
  • Risks associated with our CEO transition, including failure to timely identify a successor CEO.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q2 2021

Historical avgQ2 2021

-0.1%

Avg return

Earnings day

+0.4%

Avg return

5 days after

+1.0%

Avg return

30 days after

59%

20 / 34 earnings

Positive

+18.0%

Q4 2023

Best reaction

-13.9%

Q4 2018

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+0.8%-3.5%-8.1%
Q4 2025+0.9%-1.9%+2.6%
Q3 2025+1.8%+4.9%+5.6%
Q2 2025-0.2%+1.8%+1.8%
Q1 2025+7.0%+8.7%+14.7%
Q4 2024-2.3%-1.3%-5.1%
Q3 2024-5.0%-5.2%-3.7%
Q2 2024-4.6%-7.6%+3.2%
Q1 2024+5.3%+4.1%+3.3%
Q4 2023+18.0%+13.0%+17.1%
Q3 2023-9.7%-8.1%-8.4%
Q2 2023+0.2%-3.1%-8.6%
Q1 2023-6.2%-5.0%-7.8%
Q4 2022-3.8%-5.8%-1.2%
Q3 2022-2.3%+0.4%+0.6%
Q2 2022+3.9%+7.2%+9.9%
Q1 2022+1.4%-7.3%+8.3%
Q4 2021+1.3%+3.4%+7.4%
Q3 2021+10.6%+8.6%+7.5%
Q2 2021+5.9%+7.9%+6.3%
Q1 2021-4.1%-1.7%-7.5%
Q4 2020+2.8%+5.1%+8.1%
Q3 2020+3.1%+5.2%+17.4%
Q2 2020-11.3%-6.2%+2.7%
Q1 2020+1.0%-6.9%+17.1%
Q3 2017+2.6%+3.0%-18.9%
Q4 2017+2.6%+3.0%-18.9%
Q4 2019+4.0%+11.3%-2.2%
Q3 2018-4.7%-6.6%-5.3%
Q3 2019-4.7%-6.6%-5.3%
Q2 2018+2.5%+5.8%-4.8%
Q2 2019+6.6%+1.9%-0.6%
Q1 2019-13.9%-2.7%+2.7%
Q4 2018-13.9%-2.7%+2.7%
Q1 2018
Q2 2017
Q1 2017

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