NYSE$DOW

Dow Inc. · Q3 2022 earnings

Q3 2022 earnings · · Investor relations

Briefing

Dow's third quarter results reflected resilience amidst macroeconomic challenges, with swift actions taken to align production, prioritize resources, and reduce costs.

Dow reported a decrease in net sales and operating EBIT compared to the year-ago period, driven by higher raw material and energy costs, as well as lower equity earnings. However, the company focused on cash flow generation and returned $1.3 billion to shareholders through share repurchases and dividends.

  • GAAP earnings per share (EPS) was $1.02; Operating EPS was $1.11, compared to $2.75 in the year-ago period.
  • Net sales were $14.1 billion, down 5% versus the year-ago period.
  • Local price increased 3% versus the year-ago period.
  • Returns to shareholders totaled $1.3 billion, comprised of $800 million in share repurchases and $493 million in dividends in the quarter.

Headline financials

Total Revenue

$14.1B

Previous: $14.8B-4.9%
EPS (adj)

$1.11

Previous: $2.75-59.6%
Capital Expenditures

-$586M

Previous: -$457M-28.2%
Free Cash Flow

$153M

Previous: $1.23B-87.5%
Net Income

$739M

Previous: $1.68B-56.1%
Operating Income

$1.01B

Previous: $2.02B-50.2%
Gross Profit

$1.73B

Previous: $3.23B-46.2%
Cash & Equivalents

$2.22B

Previous: $2.91B-23.9%
Total Assets

$59.6B

Previous: $61.7B-3.5%

Revenue & EPS history

Dow · Revenue · Quarterly

$14.1B

Q3 2022-4.9%vs Q3 2021
Beat estimate in 10 of 15 quarters(67%)
ActualEstimate

Revenue by segment

Dow · $14.1B total across 4 segments · Q3 2022

  • Packaging & Spec. Plastics
    $7.33B-5.3%
  • Industrial & Infra
    $4.06B-9.4%
  • Performance Materials
    $2.65B+5.1%
  • Corporate
    $75M-20.2%

Forward guidance

Dow expects the macro environment to remain dynamic in the near-term and has outlined a playbook of actions that have the potential to deliver more than $1 billion in cost savings in 2023.

Tailwinds

  • Leveraging scale
  • Geographic diversity
  • Feedstock and derivative flexibility
  • Advancing Decarbonize and Grow strategy
  • Higher-return investments

Headwinds

  • Dynamic macro environment
  • High energy costs
  • Feedstock costs
  • Record inflation
  • Lockdowns in China

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 2022

Historical avgQ3 2022

-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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