Inside E. I. du Pont de Nemours and Company (DD)’s Earnings Numbers

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E.I. du Pont de Nemours and Company (DD) tumbled -0.75% to $65.91 and the amount of shares that traded hands from sellers to buyers was 2,715,821 shares. The company declared its Q116 earnings before market opening on 25 April 2016. DD stock traded between $64.68 and $65.98 on the day of the earnings release. EPS for the recently concluded quarter came in at $1.26 when sales were $7.4B. Analysts had been looking for $1.04 a share with $7.18B in sales.

Historical Earnings Data: E. I. du Pont de Nemours and Company topped earnings estimates in 8  of the trailing twelve fiscal quarters (3 financial years), and has a negative trend with an average miss rate of 66%. DD had posted earnings per share of $1.09 for the June 2015 quarter, falling short of the mean forecast of $1.18. Revenues reached 8.6B in the quarter, which was less than the consensus 8.75B projection. However, in the December 2015 quarter it recorded a net 5.3B revenue with EPS of $0.27. Wall Street had projected 5.53B and $0.26, respectively. For comparison, there was a revenue of 4.87B and earnings of $0.13 in the September 2015 quarter.

Current Quarter Outlook: The focus will now turn to the outlook or guidance for the next reporting quarter (June 2016). Analysts, on average, predict E. I. du Pont de Nemours and Company will report $1.1 in earnings per share (EPS) on revenue of 6.98B. The earnings-per-share consensus range is $1.04-$1.18 on sales between 6.76B and 7.20B.

Analyst Sentiment: The confidence in the future of E. I. du Pont de Nemours and Company (DD) is getting weaker by the somewhat bearish sentiment (2.50 on a 5-point scale) that analysts have issued concerning it. Analysts on the average rate the stock as Overweight. Research analysts at Credit Agricole have been covering DD stock so their up-to-date recommendation is worth a look. Credit Agricole published a research note on April 27, 2016, lowering the stock from Underperform to Outperform. Bernstein also changed its view on January 08, 2016, upgrading shares of E. I. du Pont de Nemours and Company to Mkt Perform from Outperform.

Growth Potential: The stock is trading up 41.62% versus 1-year low of $47.11 and stands -12.39% down from its peak of $75.72. The consensus price target of $71 means that the market expects Company shares to rise by 7.72 in the near future. The sell-side target prices range from $65 to $81. In the last month the stock has moved in price 4.09% with a one year change of -2.7%. The last trading session volume compares with the 4.00M average and market worth around $58.01B.

 

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