NYSE$DD

DuPont de Nemours Inc. · Q4 2022 earnings

Q4 2022 earnings · · Investor relations

Briefing

DuPont's Q4 2022 performance reflected resilience amidst a challenging global environment, with revenue and operating EBITDA meeting expectations despite weak conditions in electronics and construction end-markets.

DuPont reported a 4% decrease in net sales to $3.1 billion for Q4 2022, but organic sales increased by 5%. GAAP income from continuing operations was $105 million, with an operating EBITDA of $758 million. GAAP EPS from continuing operations was $0.20, while adjusted EPS was $0.89.

  • Net sales decreased 4% due to currency headwinds and portfolio impact, but organic sales grew by 5%.
  • Operating EBITDA increased due to pricing actions and cost control, offsetting inflationary pressures and lower volumes.
  • GAAP income and EPS from continuing operations decreased due to higher net charges related to significant items.
  • Adjusted EPS increased due to a lower share count, lower net interest expense, and higher segment earnings.

Headline financials

Total Revenue

$3.1B

Previous: $4.27B-27.3%
EPS (adj)

$0.89

Previous: $1.08-17.6%
Operating EBITDA

$758M

Previous: $973M-22.1%
EBITDA margin

24.4%

No prior period
Net Income

$4.17B

Previous: $266M+1466.9%
Operating Income

$193M

Previous: $350M-44.9%
Gross Profit

$1.06B

Previous: $1.13B-6.3%
Cash & Equivalents

$3.66B

Previous: $2.01B+82.1%
Total Assets

$41.4B

Previous: $45.7B-9.5%

Revenue & EPS history

DuPont · Revenue · Quarterly

$3.1B

Q4 2022-27.3%vs Q4 2021
Beat estimate in 10 of 15 quarters(67%)
ActualEstimate

Forward guidance

For Q1 2023, DuPont anticipates net sales of ~$2.9 billion, Operating EBITDA of ~$710 million, and Adjusted EPS of ~$0.80. For full year 2023, DuPont anticipates net sales of $12.3 billion - $12.9 billion, Operating EBITDA of $3.0 billion - $3.3 billion, and Adjusted EPS of $3.50 - $4.00.

Tailwinds

  • Continued strength in areas such as water and auto adhesives.
  • Stable demand across industrial end-markets including aerospace and healthcare products.
  • Stabilization of consumer electronics demand as 2023 progresses.
  • Normalization of customer inventory levels as 2023 progresses.
  • Improved China demand to drive sequential quarterly improvement in operating results, most notably in the second half of the year.

Headwinds

  • Lower volumes during the first half of 2023 in consumer electronics and semiconductors resulting from decreased consumer spending.
  • Inventory destocking and COVID-related impacts in China, primarily in E&I.
  • Ongoing softness in construction end-markets in W&P during 2023.
  • Continued weakness in consumer-driven, short-cycle end-markets resulting in organic sales declines in the mid single-digits versus the year-ago period for Q1 2023.
  • Semiconductor fab utilization rates are also anticipated to bottom during the first half

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

+0.8%

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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