DowDuPont’s fourth-quarter results
DowDuPont (DWDP) announced its fourth-quarter earnings results on January 31, 2019. The company reported revenue of ~$20.10 billion, indicating that its sales had remained flat compared to the fourth quarter of 2017. Its revenue fell short of analysts’ expectation of $20.92 billion.
DowDuPont’s revenue rose across all of its reporting segments except the Materials Science segment, which fell 1%. Its volumes rose 1%, and higher prices helped its revenue rise 1%. However, unfavorable foreign currency had an adverse impact of 2% on DWDP’s revenue.
Fourth-quarter adjusted EPS
DowDuPont reported adjusted EPS of $0.88 in the quarter, a rise of 6.0% compared to the fourth quarter of 2017. DowDuPont managed to just meet analysts’ estimates. Its adjusted EPS excluded $0.56 per share worth of significant items and $0.11 per share related to the amortization of intangibles. DowDuPont’s adjusted EPS rose due to cost synergies, its lower tax rate, and share buybacks.
- The company’s cash flows from operations stood at $5.1 billion compared to $1.8 billion in the fourth quarter of 2017.
- Its cost-saving synergy for the quarter was $500 million.
- DWDP bought back $1.4 billion worth of common stock during the quarter.
Guidance and stock price
DowDuPont forecast a fall in its first-quarter revenue across all of its segments driven by unfavorable foreign currency exchange.
Investors can gain indirect exposure to DowDuPont by investing in the iShares U.S. Basic Materials ETF (IYM). IYM holds 20.6% of its portfolio in DowDuPont.
Soon, we’ll provide a detailed report on DowDuPont’s fourth-quarter earnings. Stay tuned!