E I Du Pont De Nemours And Co (DD): Will a Good Earnings Report Turbocharge This Stock?

Another yellow flag?

TiO2 isn’t the only concern for DuPont. Its electronics and communications division is having a hard time as well because end markets, particularly photovoltaic materials, continue to remain sluggish. Will the first quarter signal a turnaround? Difficult to say, because news from key market China hasn’t been good lately. A leading solar panel company filed for bankruptcy, and reports suggest that more than half the number of solar panel makers went bust last year because of overcapacity in the industry.

If things don’t improve, DuPont could be hit harder than peer The Dow Chemical Company (NYSE:DOW). That’s because Dow, which gets about 10% sales from its electronics and functional material business, has already established a solid foothold in the smart phone and devices market. The Dow Chemical Company (NYSE:DOW)’s materials are reportedly present in 95% of smart devices available in the market today. Dupont, on the other hand, is more into photovoltaic products. That might explain why The Dow Chemical Company (NYSE:DOW)’s fourth-quarter sales from its electronics business improved 3% on 7% higher volumes, while DuPont’s sales fell 1% around the same time. If the trend continues, it could get worrisome for DuPont. Investors will know more once Dow follows DuPont with its quarterly report next week, and should keep a close watch.

The Foolish bottom line

It’s likely to be another sad quarter from E I Du Pont De Nemours And Co (NYSE:DD). Where the company is headed will depend on what growth plans it has for the year, something it should detail in the upcoming call. That DuPont has called a truce with Monsanto over their $1 billion lawsuit should find a lot of coverage in the call because it marks the end of a bitter fight and the beginning of a new relationship for the two companies. But it also confirms Monsanto’s indisputable leadership in the seed business.

With the Monsanto case behind it, will DuPont become turbocharged? You’ll get an idea next week. To stay updated about DuPont’s numbers and growth plans, click here to add DuPont to your watchlist.

The article Will a Good Earnings Report Turbocharge This Stock? originally appeared on Fool.com and is written by Neha Chamaria.

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