Chemical company DuPont (NYSE:DD) nosedived in pre-market trading after the company announced its preliminary fourth-quarter and FY23 results and provided its first-quarter outlook. In the first quarter, DuPont has forecasted adjusted earnings to be between $0.63 and $0.65 per share, below consensus estimates of $0.88 per share. The company has projected Q1 net sales of around $2.8 billion, which also fell short of analysts’ estimates of $3 billion.
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Management cited weak demand in China, reduced volumes, and lower channel inventory for its industrial business as reasons for the weak forecast.
In the fourth quarter, DuPont expects revenues of around $2.9 billion compared to analysts’ estimates of $3 billion. Adjusted earnings in the fourth quarter will likely be between $0.85 and $0.87 per share. Analysts are estimating Q4 earnings of $0.85 per share.
The company is anticipated to announce its Q4 results on February 6.
Is DD Stock a Good Investment?
Analysts remain cautiously optimistic about DD stock with a Moderate Buy consensus rating based on five Buys, three Holds, and one Sell. DD stock has inched up by more than 1% over the past year, and the average DD price target of $81.50 implies an upside potential of 9.1% at current levels.
