NYSE$CTVA

Corteva Inc · Q3 2020 earnings

Q3 2020 earnings · · Investor relations

Briefing

Corteva reported a decrease in net sales but an increase in organic sales for the third quarter of 2020. The company saw growth in crop protection sales, offset by a decline in seed sales due to timing shifts in North America. Cost synergies and productivity efforts contributed to margin expansion.

Corteva's third-quarter results showed a mixed performance with a 3% decrease in net sales, totaling $1.86 billion, but a 9% increase in organic sales. The company experienced a GAAP loss of $(390) million, or $(0.52) per share. Crop Protection net sales grew by 9%, while Seed net sales decreased by 23%. The company is affirming its full-year guidance for 2020.

  • Net sales decreased by 3% compared to the prior year, while organic sales increased by 9%.
  • GAAP loss from continuing operations was $(390) million, with an EPS of $(0.52).
  • Crop Protection net sales increased by 9%, driven by volume and price improvements.
  • Seed net sales decreased by 23% due to timing shifts in North America.

Headline financials

Total Revenue

$1.86B

Previous: $1.91B-2.5%
EPS (adj)

-$0.39

Previous: -$0.39+0.0%
Free Cash Flow

-$392M

Previous: -$494M+20.6%
Net Income

-$392M

Previous: -$494M+20.6%
Operating Income

-$684M

Previous: -$519M-31.8%
Gross Profit

$566M

Previous: $562M+0.7%
Cash & Equivalents

$2.77B

Previous: $1.98B+39.8%
Total Assets

$41.7B

Previous: $43.2B-3.6%

Revenue & EPS history

Corteva · Revenue · Quarterly

$1.86B

Q3 2020-2.5%vs Q3 2019
Beat estimate in 5 of 9 quarters(56%)
ActualEstimate

Revenue by segment

Corteva · $1.86B total across 2 segments · Q3 2020

  • Crop Protection
    $1.34B+8.9%
  • Seed
    $523M-23.2%

Forward guidance

Corteva affirmed its previously provided guidance for the full year 2020. Corteva expects net sales growth of 1-2% for the year. Operating EBITDA is expected to be in the range of $1.9 billion to $2 billion and operating EPS range is expected to be between $1.25 and $1.45 per share.

Tailwinds

  • Net sales growth of 1-2% is expected
  • Operating EBITDA1 is expected to be in the range of $1.9 billion to $2 billion
  • Operating EPS1 range is expected to be between $1.25 and $1.45 per share
  • Company expects to make solid progress on the authorized share repurchase program by the end of the year
  • Company now expects to complete the repurchase program by the end of 2021, six months ahead of the initial timeline

Headwinds

  • Outlook does not contemplate any operational disruptions
  • Outlook does not contemplate significant changes in customers’ demand or ability to pay
  • Outlook does not contemplate further acceleration of currency impacts resulting from the COVID-19 pandemic
  • Outlook does not contemplate political instability
  • Corteva is not able to reconcile its forward-looking non-GAAP financial measures to its most comparable U.S. GAAP financial measures

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 Q3 2020

Historical avgQ3 2020

-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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