NYSE$DOW

Dow Inc. · Q3 2020 earnings

Q3 2020 earnings · · Investor relations

Briefing

Dow's third quarter performance was driven by rebounding demand and strategic actions to focus on cash, reduce expenses, and pay down debt.

Dow reported Q3 2020 results with net sales of $9.7 billion, a decrease of 10% year-over-year, but a 16% increase sequentially. The company reported a GAAP loss per share of $0.04, but an operating EPS of $0.50. Dow achieved a net debt improvement of more than $1.8 billion year-to-date and completed the divestiture of its North American rail infrastructure assets.

  • Net sales were $9.7 billion, down 10% year-over-year, but up 16% sequentially.
  • GAAP loss per share was $0.04; Operating EPS was $0.50.
  • Free cash flow was $1.5 billion, up $156 million year-over-year.
  • The company achieved a net debt improvement of more than $1.8 billion year-to-date.

Headline financials

Total Revenue

$9.71B

Previous: $10.8B-9.8%
EPS (adj)

$0.50

Previous: $0.91-45.1%
Cash Flow Conversion

118.6%

No prior period
Capital Expenditures

-$5M

Previous: -$71M+93.0%
Free Cash Flow

-$30M

Previous: $262M-111.5%
Net Income

-$25M

Previous: $333M-107.5%
Operating Income

-$260M

Previous: $167M-255.7%
Gross Profit

$1.34B

Previous: $1.39B-3.3%
Cash & Equivalents

$4.55B

Previous: $2.82B+61.1%
Total Assets

$59.9B

Previous: $64.9B-7.7%

Revenue & EPS history

Dow · Revenue · Quarterly

$9.71B

Q3 2020-9.8%vs Q3 2019
Beat estimate in 9 of 12 quarters(75%)
ActualEstimate

Revenue by segment

Dow · $9.71B total across 4 segments · Q3 2020

  • Packaging & Spec. Plastics
    $4.57B-9.8%
  • Industrial & Infra
    $3.06B-9.1%
  • Performance Materials
    $2B-11.0%
  • Corporate
    $87M+0.0%

Forward guidance

Dow enters the fourth quarter with sequential momentum and a consistent focus on cash.

Tailwinds

  • Sequential momentum entering the fourth quarter.
  • Improved financial flexibility.
  • Consistent focus on cash generation.
  • Proactive and agile approach to evolving market conditions.
  • Fundamental competitive advantages of industry-leading feedstock flexibility.

Headwinds

  • The recovery has been uneven across markets.
  • Expectation of continued uneven recovery in the near term.
  • Impact of the COVID-19 pandemic.
  • Multiple natural disasters.
  • Uncertainty in global economic conditions.

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 2020

Historical avgQ3 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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