NYSE$DD

DuPont de Nemours Inc. · Q3 2022 earnings

Q3 2022 earnings · · Investor relations

Briefing

DuPont outperformed expectations through disciplined execution and strategic pricing actions amidst a challenging macro environment.

DuPont reported a 4% increase in net sales to $3.3 billion for Q3 2022, with organic sales growing by 11%. The company's GAAP EPS from continuing operations was $0.69, and adjusted EPS was $0.82, a 4% increase year-over-year. DuPont also announced a new $5.0 billion share repurchase program and the intent to retire $2.5 billion of Senior Notes due in November 2023.

  • Net sales increased 4%; organic sales increased 11% versus year-ago period.
  • GAAP Income from continuing operations of $359 million; operating EBITDA of $856 million increased 5% versus year-ago period.
  • GAAP EPS from continuing operations of $0.69; adjusted EPS of $0.82 increased 4% versus year-ago period.
  • Announced Board approval of new $5.0 billion share repurchase program with intended $3.25 billion accelerated share repurchase program to be executed imminently.

Headline financials

Total Revenue

$3.32B

Previous: $4.27B-22.3%
EPS (adj)

$0.82

Previous: $1.15-28.7%
Operating EBITDA

$856M

Previous: $1.09B-21.5%
EBITDA margin

25.8%

Previous: 0.5%+5060.0%
Transaction-adjusted FCF

$362M

Previous: $634M-42.9%
Free Cash Flow

$367M

Previous: $391M-6.1%
Net Income

$367M

Previous: $391M-6.1%
Operating Income

-$2.75B

Previous: -$6.7B+58.9%
Gross Profit

$1.22B

Previous: $1.49B-18.2%
Cash & Equivalents

$1.79B

Previous: $1.67B+6.9%
Total Assets

$44.1B

Previous: $46B-4.2%

Revenue & EPS history

DuPont · Revenue · Quarterly

$3.32B

Q3 2022-22.3%vs Q3 2021
Beat estimate in 10 of 15 quarters(67%)
ActualEstimate

Forward guidance

DuPont expects demand to remain strong in most end-markets, but anticipates continued softness in consumer electronics and some slowing in semiconductor fab production rates. The company plans to reduce production rates to realign working capital and expects incremental currency headwinds to further impact results. Full year organic sales growth is expected to be high-single digits, and updated full year adjusted EPS guidance includes a $0.09 headwind from an increased tax rate, offset by a lower share count and net interest benefits.

Tailwinds

  • Demand across most key end-markets remained strong.
  • Teams continued to successfully execute in a challenging macro environment.
  • Expect demand to remain strong in most end-markets, notably water, industrial and auto adhesives.
  • Expect full year organic sales growth of high-single digits remains unchanged.
  • Lower share count resulting from planned share repurchases and net interest benefits expected to be realized related to cash proceeds received from the M&M transaction.

Headwinds

  • Challenging macro environment marked by inflation and foreign currency headwinds.
  • Anticipate continued softness in consumer electronics globally.
  • Some expected slowing in customer semiconductor fab production rates.
  • Expect incremental currency headwinds to further impact both top and bottom-line results.
  • Updated full year adjusted EPS guidance is inclusive of a $0.09 headwind resulting from an increase in the anticipated tax rate for the full year 2022

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 2022

Historical avgQ3 2022

+0.8%

Avg return

Earnings day

+1.0%

Avg return

5 days after

+0.0%

Avg return

30 days after

63%

40 / 64 earnings

Positive

+12.5%

Q3 2021

Best reaction

-11.3%

Q4 2019

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026-1.1%+9.6%+4.0%
Q4 2025+4.9%+6.6%-3.7%
Q3 2025-1.1%+1.9%+2.2%
Q1 2025+1.7%-2.3%+1.1%
Q4 2024+6.8%+9.2%-1.8%
Q3 2024+3.0%+2.8%-0.1%
Q2 2024+2.8%-3.2%+4.8%
Q1 2024+7.2%+8.3%+13.3%
Q4 2023+8.6%-15.0%-6.3%
Q3 2023-6.5%-4.6%-0.6%
Q2 2023+0.1%+1.3%+1.2%
Q1 2023-7.2%-5.6%-2.8%
Q4 2022+6.3%+4.8%-2.1%
Q3 2022+8.6%+14.7%+13.1%
Q2 2022-3.4%-2.2%-8.3%
Q1 2022+4.4%-0.7%+4.4%
Q4 2021+8.1%+5.2%-4.4%
Q3 2021+12.5%+12.9%+5.7%
Q2 2021-0.5%+1.9%-1.0%
Q1 2021+3.4%+5.8%+9.1%
Q4 2020-7.2%-2.3%-14.3%
Q3 2020+1.7%+6.6%+15.4%
Q2 2020-3.7%-4.3%+3.0%
Q1 2020-1.5%+4.9%+22.9%
Q4 2019-11.3%-8.6%-25.6%
Q3 2019+6.2%+10.4%-1.2%
Q2 2019-4.3%-5.0%-5.9%
Q1 2019-6.5%-13.9%-18.2%
Q4 2018-9.8%-8.5%-10.0%
Q3 2018+7.1%+7.6%+7.3%
Q2 2018-1.7%+0.3%+3.2%
Q1 2018+1.5%+1.2%+4.2%
Q4 2017-6.2%-4.9%-9.5%
Q3 2017-3.0%-3.0%-3.2%
Q2 2017+0.3%-0.8%-2.8%
Q1 2017+2.4%-0.0%-3.5%
Q4 2016+5.4%+7.3%+10.9%
Q3 2016-0.9%-0.6%-0.3%
Q2 2016+0.7%+0.8%+1.4%
Q1 2016+2.0%
Q4 2015-1.8%
Q3 2015+1.8%
Q2 2015+3.9%
Q1 2015-0.1%
Q4 2014-3.4%
Q3 2014+1.9%
Q2 2014+3.9%
Q1 2014+0.5%
Q4 2013+3.8%
Q3 2013-0.8%
Q2 2013-0.6%
Q1 2013+3.8%
Q4 2012+4.5%
Q3 2012+1.3%
Q2 2012+0.0%
Q1 2012+1.0%
Q4 2011+3.6%
Q3 2011-9.4%
Q2 2011+1.5%
Q1 2011+1.7%
Q4 2010+2.1%
Q3 2010+1.8%
Q2 2010-3.7%
Q1 2010+1.8%

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