DuPont de Nemours Inc (DD)

DuPont de Nemours Inc (DD) stock dropped by 14.04% due to concerns related to sluggish demand and preliminary year-end results. Here's a summary of the key points:

• Sluggish Demand: DuPont de Nemours, a chemicals giant, is facing a slowdown in demand. This reduced demand is coming from both Western industrial customers and China, which is having a negative impact on the company's earnings.
• Stock Price Drop: In response to the news of the company's preliminary year-end results and the softening demand, DuPont's stock price dropped by 14.04%.
• Preliminary Year-End Results: DuPont hasn't yet released its final fourth-quarter numbers, but the company provided preliminary information. It expects to earn between $0.85 and $0.87 per share in the quarter on revenue of $2.9 billion. Analysts had anticipated earnings of $0.85 per share on revenue of $3 billion.
• First Quarter 2024 Expectations: For the first quarter of 2024, DuPont anticipates net sales of $2.8 billion and adjusted earnings per share of $0.63 to $0.65 per share. These figures are below the market expectations of $0.88 per share in earnings on $3 billion in revenue.
• Factors Impacting Performance: DuPont's CEO, Ed Breen, attributed the challenging performance to several factors. These include additional channel inventory destocking within the company's industrial businesses and continued weak demand in China. He also mentioned that the absence of certain discrete items that benefited fourth-quarter operating EBITDA would impact the first-quarter results.
• Semiconductor Business: While the semiconductor business appears to be stabilizing, there are still questions regarding the performance of other end markets. Overall, DuPont de Nemours Inc. is facing challenges due to weakening demand, which has led to disappointing preliminary results and a notable drop in its stock price. The company's full fourth-quarter results are expected to be released on February 6, which may provide more insights into its performance and outlook.

DuPont de Nemours Inc (DD) dropped by 8.18% from $72.88 to $66.92 in the trading on Wednesday November 1, 2023. The reason why DD stock down today include

• Lower outlook for the full year: DuPont trimmed its full-year revenue forecast to $12.17 billion from an earlier range of $12.45 billion to $12.55 billion. The company forecast annual earnings per share of $3.45, compared with prior expectations of between $3.40 and $3.50, and expects to buy back more shares next year.
• Customer inventory destocking: Companywide adjusted EBITDA was down 9% versus the prior-year quarter as volume declines from customer inventory destocking weighed on profits, as DuPont ran its plants at a lower capacity utilization rate to sell excess inventory. DuPont also highlighted volume headwinds from its network of distributor destocking following excess inventory built up during the COVID-19 pandemic, and said it expects the destocking effects to cease by the second quarter of 2024.