NYSE$DOW

Dow Inc. · Q1 2023 earnings

Q1 2023 earnings · · Investor relations

Briefing

Dow's first quarter 2023 results were reported, reflecting resilience in a challenging macroeconomic environment through strategic cost management and focus on high-value products.

Dow reported a GAAP loss per share of $0.13 and operating earnings per share of $0.58. Net sales were $11.9 billion, a 22% decrease compared to the year-ago period. The company focused on cost savings and aligned operating rates with market dynamics to maximize cash flow generation.

  • GAAP loss per share was $0.13; operating earnings per share (EPS) was $0.58, compared to $2.34 in the year-ago period.
  • Net sales were $11.9 billion, down 22% versus the year-ago period, reflecting declines in all operating segments driven by slower global macroeconomic activity.
  • Cash provided by operating activities – continuing operations was $531 million.
  • Returns to shareholders totaled $621 million in the quarter, including $496 million in dividends and $125 million in share repurchases.

Headline financials

Total Revenue

$11.9B

Previous: $15.3B-22.4%
EPS (adj)

$0.58

Previous: $2.34-75.2%
Cash Flow Conversion

85.0%

Previous: 50.8%+67.3%
Capital Expenditures

-$495M

Previous: -$352M-40.6%
Free Cash Flow

-$588M

Previous: $1.22B-148.3%
Net Income

-$93M

Previous: $1.57B-105.9%
Operating Income

-$561M

Previous: $1.63B-134.5%
Gross Profit

$1.22B

Previous: $2.86B-57.3%
Cash & Equivalents

$3.32B

Previous: $3.14B+5.6%
Total Assets

$59.3B

Previous: $63.3B-6.3%

Revenue & EPS history

Dow · Revenue · Quarterly

$11.9B

Q1 2023-22.4%vs Q1 2022
Beat estimate in 10 of 15 quarters(67%)
ActualEstimate

Revenue by segment

Dow · $11.9B total across 4 segments · Q1 2023

  • Packaging & Spec. Plastics
    $6.11B-19.8%
  • Industrial & Infra
    $3.38B-25.3%
  • Performance Materials
    $2.28B-25.4%
  • Corporate
    $83M+29.7%

Forward guidance

Looking to the remainder of the year, Dow expects the benefit of its operational and cost actions to continue to build as they progress through 2023. They will remain flexible, responding quickly as conditions evolve and expect oil and gas spreads to further support their strategic cost-advantaged positions.

Tailwinds

  • Consistent and disciplined execution enhances ability to navigate the impact of higher inflation on consumer demand and soft global economic activity.
  • Benefit of operational and cost actions to continue to build as we progress through 2023.
  • Remain flexible, responding quickly as conditions evolve.
  • Expect oil and gas spreads to further support our strategic cost-advantaged positions.
  • Underlying long-term growth fundamentals in our market verticals remain intact.

Headwinds

  • Impact of higher inflation on consumer demand.
  • Soft global economic activity.
  • Challenging macroeconomic conditions.
  • Lower local polyethylene prices
  • Lower industrial and consumer packaging sales volumes in EMEAI and Asia Pacific.

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 2023

Historical avgQ1 2023

-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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