NYSE$CTVA

Corteva Inc · Q4 2022 earnings

Q4 2022 earnings · · Investor relations

Briefing

Corteva reported mixed results for Q4 2022, with net sales up but a GAAP loss from continuing operations.

Corteva's Q4 2022 results showed a 10% increase in net sales, driven by price increases, but the company reported a GAAP loss from continuing operations of $41 million. Operating EBITDA increased by 41% compared to the prior year. The company provided full-year 2023 guidance, expecting net sales in the range of $18.1 billion to $18.4 billion.

  • Net sales increased by 10% compared to the same period last year, with organic sales rising by 11%.
  • GAAP loss from continuing operations after income taxes was $41 million, compared to income of $155 million in the fourth quarter of 2021.
  • Operating EBITDA for the fourth quarter was $370 million, up 41% compared to the prior year.
  • The company expects net sales in the range of $18.1 billion to $18.4 billion for full-year 2023.

Headline financials

Total Revenue

$3.83B

Previous: $3.48B+9.9%
EPS (adj)

$0.16

Previous: $0.08+100.0%
Net Income

-$41M

Previous: $155M-126.5%
Operating Income

-$41M

No prior period
Gross Profit

$1.32B

Previous: $1.25B+5.5%
Cash & Equivalents

$3.19B

Previous: $4.46B-28.4%
Total Assets

$42.6B

Previous: $42.3B+0.6%

Revenue & EPS history

Corteva · Revenue · Quarterly

$3.83B

Q4 2022+9.9%vs Q4 2021
Beat estimate in 5 of 15 quarters(33%)
ActualEstimate

Revenue by segment

Corteva · $3.83B total across 2 segments · Q4 2022

  • Crop Protection
    $2.18B+4.4%
  • Seed
    $1.65B+18.2%

Forward guidance

Corteva provided guidance for the full-year 2023, expecting net sales in the range of $18.1 billion to $18.4 billion. Operating EBITDA is expected to be in the range of $3.4 billion to $3.6 billion. Operating EPS is expected to be in the range of $2.70 to $2.90 per share.

Tailwinds

  • The outlook for agriculture remains robust in 2023, with record demand for grain and oilseeds as ending stocks continue to be under pressure.
  • Commodity prices are above historical averages.
  • Farmer balance sheets and income levels remain healthy, leading farmers to prioritize technology to maximize return.
  • The Company expects an increase in U.S. planted area.
  • Operating EBITDA1 is expected to be in the range of $3.4 billion to $3.6 billion, growth of 9% at the mid-point.

Headwinds

  • Forecasted higher effective tax rate
  • Forecasted higher interest expense
  • Volume declined 1% versus the prior-year period, largely driven by lower Pioneer corn deliveries in North America
  • The decision to exit Russia, and the war in Ukraine
  • Wet weather and low pest pressure in Asia Pacific and drought conditions in Latin America

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 Q4 2022

Historical avgQ4 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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