DuPont (DD) Stock Turns Red on Weak Revenue Guidance

DuPont de Nemours Inc. (NYSE:DD) was founded in Delaware way back in 1802. It initially started with producing black powder. Over the years, it added numerous chemicals to its portfolio and became one of the world’s biggest chemical conglomerates. Its products range from industrial chemicals and synthetic fibers to petroleum-based fuels and agricultural chemicals.

The Wilmington, Delaware-based chemical company on Tuesday announced its financial results for the fourth quarter above expectations. It reported earnings of $222 million, or 30 cents per share for the three months ended Dec. 31, up from 24 cents per share in the comparable period of 2019. On an adjusted basis, profit came in at 95 cents per share, easily beating the consensus forecast of 85 cents per share.

Revenue marginally advanced to $5.25 billion in the quarter, just ahead of $5.15 billion in sales projected by analysts. Strong sales across electronics, nutrition, and biosciences segments make up for the weak performance in safety and construction segments.

Speaking on the results, CEO Ed Breen said, “The leading positions we hold in automotive, protective garments, residential construction, semiconductor, and smartphones markets enabled us to capitalize on positive momentum and deliver strong fourth-quarter results with sequential volume improvement in all segments.”

DuPont also issued its financial outlook for the first quarter. It expects to report an adjusted profit in the range of 75 cents per share to 77 cents per share for the current quarter, as compared to the consensus forecast of 67 cents per share.

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Revenue for the first quarter is expected to come between $3.75 billion to $3.85 billion, below analysts’ average estimate of $3.93 billion. The lower-than-expected revenue outlook sent DuPont (DD) shares down more than 2 percent on Tuesday.