NYSE$DOW

Dow Inc. · Q3 2021 earnings

Q3 2021 earnings · · Investor relations

Briefing

Dow's Q3 2021 results were released, demonstrating sequential and year-over-year growth in both top and bottom-line performance.

Dow reported strong Q3 2021 results with net sales of $14.8 billion, up 53% year-over-year, and operating EPS of $2.75, compared to $0.50 in the year-ago period. The company saw gains across all operating segments and regions, driven by tight supply and demand dynamics. Cash flow from operating activities was $2.7 billion, and free cash flow was $2.3 billion.

  • GAAP earnings per share (EPS) was $2.23; Operating EPS was $2.75, compared to $0.50 in the year-ago period.
  • Net sales were $14.8 billion, up 53% versus the year-ago period and 7% sequentially, with gains in all operating segments and regions.
  • Cash provided by operating activities – continuing operations was $2.7 billion, up $958 million year-over-year and an increase of $698 million compared to the prior quarter. Free cash flow was $2.3 billion.
  • Returns to shareholders totaled $918 million in the quarter, comprised of $518 million in dividends and $400 million in share repurchases.

Headline financials

Total Revenue

$14.8B

Previous: $9.71B+52.8%
EPS (adj)

$2.75

Previous: $0.50+450.0%
Cash Flow Conversion

75.3%

Previous: 118.6%-36.5%
Capital Expenditures

-$457M

Previous: -$5M-9040.0%
Free Cash Flow

$1.23B

Previous: -$30M+4186.7%
Net Income

$1.68B

Previous: -$25M+6832.0%
Operating Income

$2.02B

Previous: -$260M+878.5%
Gross Profit

$3.23B

Previous: $1.34B+140.6%
Cash & Equivalents

$2.91B

Previous: $4.55B-36.0%
Total Assets

$61.7B

Previous: $59.9B+3.0%

Revenue & EPS history

Dow · Revenue · Quarterly

$14.8B

Q3 2021+52.8%vs Q3 2020
Beat estimate in 13 of 15 quarters(87%)
ActualEstimate

Revenue by segment

Dow · $14.8B total across 4 segments · Q3 2021

  • Packaging & Spec. Plastics
    $7.74B+69.5%
  • Industrial & Infra
    $4.48B+46.5%
  • Performance Materials
    $2.53B+26.2%
  • Corporate
    $94M+8.0%

Forward guidance

Dow anticipates robust end-market demand extending into 2022, alongside ongoing logistics constraints and low inventory levels. The company is focused on increasing earnings, cash flow, and returns by decarbonizing its footprint and achieving carbon emissions reduction targets. Dow plans to leverage higher-margin, sustainability-driven solutions and value-accretive investments to drive long-term shareholder value.

Tailwinds

  • Robust end-market demand expected to extend into 2022.
  • Well-positioned to increase earnings, cash flow and returns.
  • Focus on decarbonizing footprint and achieving carbon emissions reduction targets.
  • Growth from higher-margin, sustainability-driven, downstream solutions.
  • Value-accretive investments to replace end-of-life assets with carbon-efficient and higher-ROIC production.

Headwinds

  • Near-term logistics constraints.
  • Low inventory levels across value chains.
  • Higher energy costs.
  • Industry-wide value chain disruptions from hurricanes on the U.S. Gulf Coast.
  • Third-party supply constraints.

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 2021

Historical avgQ3 2021

-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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