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DuPont: Strong 2Q17 Earnings before Merger with Dow Chemical

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DuPont: Strong 2Q17 Earnings before Merger with Dow Chemical PART 1 OF 8

DuPont Posted Strong Earnings in 2Q17, Stock Rose

DuPont’s 2Q17 earnings

DuPont (DD) announced its 2Q17 earnings on July 25, 2017, before the market opened. DuPont reported operating EPS (earnings per share) of $1.38—an increase of 11.30% on a year-over-year basis. In 2Q16, DuPont reported operating EPS of $1.24. The company also beat analysts’ operating EPS expectation of $1.29.

DuPont Posted Strong Earnings in 2Q17, Stock Rose

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The increase in DuPont’s operating EPS was primarily driven by higher sales volumes across the segments and gains from currency hedging from prevailing weakness in the US dollar. The decrease in the average number of outstanding shares also boosted DuPont’s operating EPS. At the end of 2Q17, the total number of average shares outstanding stood at 872.75 million—compared to ~879.18 million outstanding shares in 2Q16.

Ed Breen, DuPont’s chairman and CEO, said, “Our increased operating earnings per share and strong sales growth of 5 percent were driven by volume growth from our highly productive innovation pipeline.”

Stock price reaction

DuPont’s stock prices reacted positively to the earnings report. The stock rose 1.4% and closed at $85.49. On the same day, Dow Chemical (DOW), LyondellBasell (LYB), and Eastman Chemical (EMN) rose 0.90%, 0.80%, and 0.37%, respectively.

Investors can hold DuPont indirectly by investing in the Materials Select Sector SPDR Fund (XLB). XLB has invested 12.30% of its portfolio in DuPont as of July 25, 2017.

In the next part, we’ll continue to discuss DuPont’s earnings. We’ll see how its reporting segments performed.

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