Shares of DuPont (DD) are up 7% after the U.S. chemical company reported strong third-quarter financial results.
The rise in DD stock is significant as it has long trailed the broader market. Before today, the company’s share price had risen less than 10% this year compared to a 20% rise in the benchmark S&P 500 index. Over the last five years, Dupont stock has gained less than 30%.
The sharp uptick in DD stock comes after the chemical maker announced earnings per share (EPS) of $1.18, which beat consensus Wall Street forecasts of $1.03. Revenue in the third quarter totaled $3.2 billion, which matched consensus estimates among analysts. Sales were up 3% from a year earlier.
Improving Conditions
DuPont’s management team said that the company’s business is improving and demand for its products is accelerating after a prolonged slump caused first by the Covid-19 pandemic and then by elevated interest rates used to lower inflation.
DuPont’s comparable sales in its electronics and industrial segment rose 10% year-over-year. That gain was partially offset by a 2% decline in sales at the company’s water and protection segment. Nevertheless, profit margins at DuPont improved by nearly one full percentage point.
In terms of guidance, DuPont said that it expects a profit in the current fourth quarter of the year of $0.98 on sales of $3.1 billion, which is inline with Wall Street forecasts.
Is DD Stock a Buy?
Dupont stock has a consensus Moderate Buy rating among six Wall Street analysts. That rating is based on three Buy, two Hold, and one Sell recommendations issued in the last three months. The average DD price target of $97.80 implies 11.96% upside from current levels.
