DuPont de Nemours (DD) stock leapt Tuesday after strength in its electronics business drove better-than-expected earnings in the fourth quarter ahead of a planned spinoff of the division later this year. The stock opened up more than 6% higher on Wall Street.
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The materials technology company reported adjusted earnings per share (EPS) of $1.13, well ahead of guidance, from sales of $3.1 billion in its Fiscal fourth quarter. It also raised its 2025 full-year profit forecast ahead of the planned spin off the electronics business this year.
The conglomerate first announced it would break into three last year, but in January said it would instead split into two, with the electronics business set to become a standalone entity by November. Alongside the updated split announcement, DD stuck to its Q4 guidance offered in November for EPS of $0.98.
Commenting on the deal alongside the Q4 numbers today, CEO Lori Koch said she is confident about the separation’s “value creation opportunities.”
DD’s decision to break up the conglomerate structure mirror those of several other U.S. companies. Most recently Honeywell (HON) announced plans to split into three separate businesses to unlock more value, particularly from its aerospace division.
DD Raises Guidance as AI Demand Booms
Rising demand for artificial intelligence applications helped DD’s electronics business.
Sales in its semiconductor technology division were up “low-teens” on continued semiconductor demand recovery, “driven primarily by AI technology applications and stronger China demand,” the company said.
For its Fiscal first quarter of 2025, the company guided EPS of $0.95 share from sales of $3 billion, versus Wall Street estimates of $0.79 and $2.9 billion. Full year 2025 EPS is now seen at $4.35 against the previously anticipated $3.91.
Is DD a Good Stock to Buy?
Overall, Wall Street has a Moderate Buy consensus rating on DD stock, based on eight Buys, one Hold and one Sell. The average DD price target of $97.30 implies 22% upside, though revisions may be likely following the earnings update.
