NYSE$CTVA

Corteva Inc · Q2 2022 earnings

Q2 2022 earnings · · Investor relations

Briefing

Corteva's second quarter results showcased growth in net sales and operating EBITDA.

Corteva reported an 11% increase in net sales and an 18% increase in Operating EBITDA compared to the same quarter last year. The growth was driven by strong demand for crop protection products and price increases. Management also raised full year 2022 net sales and earnings guidance.

  • Net sales increased by 11% versus the same period last year.
  • Organic sales rose 13%, with increases in all regions.
  • Operating EBITDA increased by 18% compared to the year-ago period.
  • The company recorded $68 million of restructuring and other charges.

Headline financials

Total Revenue

$6.25B

Previous: $5.63B+11.1%
EPS (adj)

$1.64

Previous: $1.40+17.1%
Free Cash Flow

$969M

Previous: $970M-0.1%
Net Income

$969M

Previous: $970M-0.1%
Operating Income

$1.37B

Previous: $1.04B+31.3%
Gross Profit

$2.93B

Previous: $2.62B+11.9%
Cash & Equivalents

$2.4B

Previous: $2.86B-16.1%
Total Assets

$40.9B

Previous: $41.5B-1.4%

Revenue & EPS history

Corteva · Revenue · Quarterly

$6.25B

Q2 2022+11.1%vs Q2 2021
Beat estimate in 10 of 16 quarters(63%)
ActualEstimate

Revenue by segment

Corteva · $6.25B total across 2 segments · Q2 2022

  • Seed
    $3.95B+4.4%
  • Crop Protection
    $2.31B+24.8%

Forward guidance

Corteva expects net sales in the range of $17.2 billion to $17.5 billion, Operating EBITDA in the range of $2.95 billion to $3.10 billion, and Operating EPS in the range of $2.45 to $2.60 per share.

Tailwinds

  • Record demand for grain and oilseeds in 2022
  • Healthy grower balance sheets and income levels
  • Prioritization of technology to maximize return
  • Net sales growth of 11% expected for the year
  • Operating EBITDA1 growth of 17% expected for the year

Headwinds

  • Recent commodity price volatility
  • Increased input costs for fuel and fertilizer
  • The company is not able to reconcile its forward-looking non-GAAP financial measures to its most comparable U.S. GAAP financial measures
  • Expected total pre-tax restructuring and other charges of approximately $350 million to $420 million
  • Uncertainties related to the Russia and Ukraine military conflict

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 2022

Historical avgQ2 2022

-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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