NYSE$DOW

Dow Inc. · Q3 2023 earnings

Q3 2023 earnings · · Investor relations

Briefing

Dow's Q3 2023 results were reported, demonstrating resilience in a challenging macro environment through cost reduction and cash generation initiatives.

Dow's Q3 2023 net sales reached $10.7 billion, a 24% decrease compared to the previous year, while GAAP earnings per share stood at $0.42. The company focused on cost savings and cash flow management, achieving $1.7 billion in operating cash flow and returning $617 million to shareholders.

  • GAAP earnings per share was $0.42; operating earnings per share (EPS) was $0.48.
  • Net sales were $10.7 billion, down 24% versus the year-ago period.
  • Cash provided by operating activities – continuing operations was $1.7 billion.
  • Returns to shareholders totaled $617 million in the quarter.

Headline financials

Total Revenue

$10.7B

Previous: $14.1B-24.0%
EPS (adj)

$0.48

Previous: $1.11-56.8%
Cash Flow Conversion

103.0%

No prior period
Capital Expenditures

-$772M

Previous: -$586M-31.7%
Free Cash Flow

-$470M

Previous: $153M-407.2%
Net Income

$302M

Previous: $739M-59.1%
Operating Income

$442M

Previous: $1.01B-56.1%
Gross Profit

$1.14B

Previous: $1.73B-34.4%
Cash & Equivalents

$3.08B

Previous: $2.22B+39.0%
Total Assets

$58.3B

Previous: $59.6B-2.1%

Revenue & EPS history

Dow · Revenue · Quarterly

$10.7B

Q3 2023-24%vs Q3 2022
Beat estimate in 10 of 15 quarters(67%)
ActualEstimate

Revenue by segment

Dow · $10.7B total across 4 segments · Q3 2023

  • Packaging & Spec. Plastics
    $5.45B-25.6%
  • Industrial & Infra
    $3.04B-25.2%
  • Performance Materials
    $2.13B-19.7%
  • Corporate
    $111M+48.0%

Forward guidance

Dow anticipates benefiting from rising oil prices due to its cost-advantaged asset footprint, while maintaining focus on operational and financial discipline.

Tailwinds

  • Rising oil prices are expected to benefit Dow's cost-advantaged asset footprint.
  • Continued focus on operational and financial discipline.
  • Decarbonize and Grow and Transform the Waste strategies are expected to deliver more than $3 billion in underlying earnings by 2030.
  • Reduce greenhouse gas emissions by 5 million metric tons.
  • Commercialize 3 million metric tons of circular and renewable solutions annually by 2030.

Headwinds

  • Challenging market dynamics.
  • Slower global macroeconomic activity.
  • Lower local prices in all operating segments and regions.
  • Lower feedstock and energy costs.
  • Declines in olefin and aromatic merchant sales and lower polyethylene prices primarily in EMEAI.

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 2023

Historical avgQ3 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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