DuPont de Nemours, Inc. (NYSE:DD) recorded earnings (on a reported basis) from continuing operations of 24 cents per share for fourth-quarter 2019, down from earnings of 39 cents per share in the comparable quarter a year ago. The bottom line in the reported quarter was hurt by higher tax rate and lower segment results.
Barring one-time items, earnings were 95 cents per share for the reported quarter, missing the Zacks Consensus Estimate of 96 cents.
DuPont raked in net sales of $5,204 million, down around 5% from the comparable quarter a year ago. It fell short of the Zacks Consensus Estimate of $5,217.7 million.
Net sales fell 2% on an organic basis as 1% higher pricing was more than offset by 3% lower volumes. The company faced challenges from weak automotive markets and lower nylon prices.
DuPont de Nemours, Inc. Price, Consensus and EPS Surprise
DuPont de Nemours, Inc. price-consensus-eps-surprise-chart | DuPont de Nemours, Inc. Quote
Full-Year Results
For 2019, loss from continuing operations (as reported) was 86 cents per share, compared with earnings of 45 cents per share a year ago. Revenues were $21,512 million for the full year, down around 5% year over year.
Segment Highlights
The company’s Electronics & Imaging segment recorded net sales of $937 million in the reported quarter, up 3% on a year-over-year comparison basis. Organic sales rose 3%. Higher volumes in interconnect solutions were masked by weaker volumes in semiconductor technologies.
At the Nutrition & Biosciences unit, sales fell 2% to $1.5 billion. Organic sales were flat year over year on 1% higher pricing and 1% lower volumes.
Net sales for the Transportation & Industrial division were $1.2 billion in the reported quarter, down 9% year over year. Organic sales fell 8% on 2% lower pricing and 6% volume decline due to sustained weakness in automotive and electronics markets.
Net sales in the Safety & Construction unit were $1.3 billion, down 3%. Organic sales rose 1% on the back of a 3% price improvement, offset by 2% lower volume. Local prices rose in all businesses and all regions.
Foe the non-core reporting segment, net sales fell 19% to $404 million. Organic sales declined 9%, impacted by 15% lower volumes. Prices rose 6% in the quarter.
Financials
DuPont had cash and cash equivalents of $1,540 million at the end of 2019. Long-term debt was $13,617 million.
The company returned more than $1.3 billion to shareholders since Jun 1 including $750 million of share buybacks.
Outlook
DuPont expects adjusted earnings per share in the range of $3.70-$3.90 for 2020. The guidance takes into account continued headwind in nylon pricing and mix. Adjusted earnings for first-quarter 2020 are projected in the range of 70-74 cents per share.
The company also sees full-year 2020 sales between $21.5 billion and $22 billion. Moreover, it envisions first-quarter net sales to be down mid-single digits, factoring in the nylon headwinds.
Price Performance
DuPont’s shares are down around 12.4% over the past three months, compared with the roughly 2.2% decline recorded by the industry.
Zacks Rank & Key Picks
DuPont currently carries a Zacks Rank #5 (Strong Sell).
Some better-ranked stocks in the basic materials space include Daqo New Energy Corp. (NYSE:DQ) , Royal Gold, Inc. (NASDAQ:RGLD) and Pretium Resources Inc. (TSX:PVG) , each currently sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Daqo New Energy has projected earnings growth rate of 326.3% for 2020. The company’s shares have rallied roughly 33% in a year’s time.
Royal Gold has estimated earnings growth rate of 83.5% for fiscal 2020. The company’s shares have shot up roughly 30% in a year’s time.
Pretium Resources has projected earnings growth rate of 106.9% for 2020. The company’s shares have rallied around 40% over a year.
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DuPont de Nemours, Inc. (DD): Free Stock Analysis Report
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