NYSE$DOW

Dow Inc. · Q1 2020 earnings

Q1 2020 earnings · · Investor relations

Briefing

Dow's financial performance declined due to lower prices and demand, but was partially offset by cost savings and strong demand in specific sectors.

Dow's first quarter 2020 results reflect a challenging environment with net sales down 11% year-over-year due to lower prices and a 2% volume decline. The company saw demand growth in specific sectors like food packaging and cleaning products, but overall earnings were impacted by margin compression and equity losses. Despite these challenges, Dow generated solid cash flow and maintained a strong liquidity position.

  • GAAP earnings per share was $0.32; Operating EPS was $0.59, excluding significant items.
  • Net sales were $9.8 billion, down 11% versus pro forma results in the year-ago period, primarily driven by lower local prices.
  • Cash provided by operating activities from continuing operations was $1.2 billion, up $193 million versus the year-ago period.
  • Returns to shareholders totaled $643 million, including dividends and share repurchases.

Headline financials

Total Revenue

$9.77B

Previous: $13.6B-28.1%
EPS (adj)

$0.59

Previous: $0.84-29.8%
Capital Expenditures

-$5M

Previous: -$25M+80.0%
Free Cash Flow

$234M

Previous: $516M-54.7%
Net Income

$239M

Previous: $541M-55.8%
Operating Income

$518M

Previous: $1.43B-63.9%
Gross Profit

$1.54B

Previous: $2.88B-46.4%
Cash & Equivalents

$3.63B

Previous: $2.97B+22.4%
Total Assets

$60.7B

Previous: $79.7B-23.9%

Revenue & EPS history

Dow · Revenue · Quarterly

$9.77B

Q1 2020-28.1%vs Q1 2019
Beat estimate in 8 of 12 quarters(67%)
ActualEstimate

Revenue by segment

Dow · $9.77B total across 4 segments · Q1 2020

  • Packaging & Spec. Plastics
    $4.61B-10.3%
  • Industrial & Infra
    $3.05B-12.7%
  • Performance Materials
    $2.07B-11.0%
  • Corporate
    $51M-26.1%

Forward guidance

Dow anticipates a gradual recovery starting in May/June, contingent on the sustainable reopening of global economies and is taking proactive measures to bolster its financial position by reducing capital expenditures, trimming operating expenses, and optimizing working capital.

Tailwinds

  • Gradual and sustainable return of global economic activity is expected.
  • Reopening of economies in May and June is anticipated.
  • Further reducing capital expenditure target to $1.25 billion.
  • Trimming operating expenses by $350 million.
  • Unlocking another $500 million from working capital.

Headwinds

  • Full extent of the impact of the pandemic in major geographies is still being determined.
  • Virus continues to spread.
  • Select manufacturing units are being temporarily idled.
  • Markets more severely affected by restrained economic activity.
  • Global economic rebounds are uncertain.

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 Q1 2020

Historical avgQ1 2020

-1.0%

Avg return

Earnings day

-0.1%

Avg return

5 days after

-1.5%

Avg return

30 days after

42%

14 / 33 earnings

Positive

+13.0%

Q3 2025

Best reaction

-9.4%

Q1 2020

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026-0.8%-2.1%-7.2%
Q4 2025-1.9%+9.8%+10.6%
Q3 2025+13.0%+17.0%+2.3%
Q2 2025+2.0%+2.7%+9.2%
Q1 2025+2.6%+5.7%-2.3%
Q4 2024-6.1%-6.1%-7.2%
Q3 2024-3.5%-3.9%-11.7%
Q2 2024-0.9%+0.7%+0.4%
Q1 2024+0.5%-0.1%+1.4%
Q4 2023+1.8%+2.6%+6.2%
Q3 2023-1.5%-0.3%+6.6%
Q2 2023+2.2%+5.5%+1.9%
Q1 2023-5.1%-1.8%-9.1%
Q4 2022+1.9%+2.5%-0.2%
Q3 2022+3.9%+6.0%+10.9%
Q2 2022-3.2%-2.4%+5.6%
Q1 2022+1.4%-0.3%+0.8%
Q4 2021+4.9%+8.0%+4.2%
Q3 2021-2.5%-2.0%-4.3%
Q2 2021+0.6%+3.7%+1.9%
Q1 2021-4.2%-3.3%+6.2%
Q4 2020-4.6%+0.4%+9.0%
Q3 2020-0.0%-4.1%+12.7%
Q2 2020-3.9%-3.9%-1.7%
Q1 2020-9.4%-10.9%+3.0%
Q4 2019+2.8%-0.9%-14.3%
Q3 2018+3.5%+3.2%+9.6%
Q3 2019+6.9%+9.0%+14.8%
Q2 2019-7.0%-8.3%-22.9%
Q4 2017-7.0%-8.3%-22.9%
Q4 2018-7.0%-8.3%-22.9%
Q2 2018-7.0%-8.3%-22.9%
Q1 2019-5.0%-5.7%-16.7%
Q1 2018
Q2 2017
Q1 2017
Q4 2016
Q3 2016
Q2 2016
Q1 2016
Q4 2015
Q3 2015
Q2 2015
Q1 2015
Q4 2014
Q3 2014
Q2 2014
Q1 2014
Q4 2013
Q3 2013
Q2 2013
Q1 2013
Q4 2012
Q3 2012
Q2 2012
Q1 2012

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