NYSE$DD

DuPont de Nemours Inc. · Q3 2023 earnings

Q3 2023 earnings · · Investor relations

Briefing

DuPont's Q3 2023 earnings were released, showcasing a mix of challenges and strategic progress.

DuPont reported a decrease in net sales by 8% to $3.1 billion, with organic sales declining by 10%. Despite volume headwinds, the company demonstrated operating execution with a 5% sequential operating EBITDA growth and margin improvement. Strong cash generation was highlighted, and the sale of the Delrin® business was completed.

  • Net sales decreased by 8%, with a 10% decline in organic sales due to lower volume in semiconductor and construction end-markets.
  • GAAP EPS from continuing operations was $0.62, while adjusted EPS was $0.92.
  • Cash provided by operating activities from continuing operations reached $740 million, with adjusted free cash flow of $621 million.
  • The company is taking additional restructuring actions to drive operational performance in response to ongoing volume headwinds.

Headline financials

Total Revenue

$3.06B

Previous: $3.32B-7.8%
EPS (adj)

$0.92

Previous: $0.82+12.2%
Operating EBITDA

$775M

Previous: $856M-9.5%
EBITDA margin

25.3%

Previous: 25.8%-1.9%
Transaction-adjusted FCF

$621M

Previous: $362M+71.5%
Capital Expenditures

-$119M

No prior period
Free Cash Flow

$319M

Previous: $367M-13.1%
Net Income

$319M

Previous: $367M-13.1%
Operating Income

-$2.69B

Previous: -$2.75B+2.4%
Gross Profit

$1.1B

Previous: $1.22B-9.7%
Cash & Equivalents

$1.34B

Previous: $1.79B-25.0%
Total Assets

$39.1B

Previous: $44.1B-11.3%
R&D Expense

$129M

No prior period

Revenue & EPS history

DuPont · Revenue · Quarterly

$3.06B

Q3 2023-7.8%vs Q3 2022
Beat estimate in 10 of 15 quarters(67%)
ActualEstimate

Forward guidance

DuPont revised its 2023 full year net sales and operating EBITDA guidance to reflect near-term volume headwinds and are also planning additional restructuring actions with realization of savings expected to begin later in the first quarter of 2024.

Tailwinds

  • Underlying consumer electronics demand is expected to be similar with the third quarter and reflected by stable order rates from our customers
  • Some sequential sales lift expected in Semiconductor Technologies
  • Teams continue to successfully execute in a constrained volume environment through strong internal discipline
  • Focus on operational excellence
  • Pleased with sequential margin improvement despite volume headwinds and by our strong cash performance during the third quarter

Headwinds

  • Seeing additional channel inventory destocking
  • Slower industrial water demand in China
  • Revising our 2023 full year net sales guidance to reflect near-term volume headwinds
  • Revising our 2023 operating EBITDA guidance to reflect near-term volume headwinds
  • Planning additional restructuring actions with realization of savings expected to begin later in the first quarter of 2024

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 2023

Historical avgQ3 2023

+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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