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DuPont (DD) Issues Preliminary Q1 Results, Suspends 2020 View

Zacks Equity Research

DuPont de Nemours, Inc. DD has issued preliminary results for first-quarter 2020.

The company expects adjusted earnings per share of 82-84 cents for first-quarter 2020. It also anticipates net sales of roughly $5.2 billion for the first quarter.

DuPont expects loss from continuing operations of $510-$725 million, on a reported basis, for the first quarter.

Moreover, the company anticipates operating EBITDA of roughly $1.3 billion for the first quarter. DuPont anticipates delivering operating EBITDA results in each key segment above its initial expectations, driven by high demand for products used in personal protection, food & beverage, water filtration, probiotics and electronics markets.

The company also noted that it idled production at various manufacturing sites (primarily production plants that fall under its transportation and industrial segment) and delayed some capital investments as part of its actions to address macroeconomic uncertainties, emanating from the coronavirus pandemic.

DuPont has entered a 364-day $1-billion revolving credit facility, replacing the $750-million revolving credit facility slated to expire in June 2020, and secured a 364-day $2-billion delayed-draw facility to ensure that it can refinance debt slated to mature in November 2020.

Notably, the two new facilities are expected to strengthen its liquidity position in the short term. Also, the company has committed financing in place to bridge its debt slated to mature in November 2020 to the receipt of the special cash payment linked to the Nutrition & Biosciences and IFF transaction.

Moreover, the company decided to suspend its outlook for adjusted EPS and net sales for 2020 due to the global softening in automotive, oil & gas, and select industrial end-markets as well as the unknown duration and severity of the coronavirus pandemic.

DuPont is scheduled to release first-quarter 2020 results on May 5.

DuPont de Nemours, Inc. Price and Consensus

 

DuPont de Nemours, Inc. Price and Consensus

DuPont de Nemours, Inc. price-consensus-chart | DuPont de Nemours, Inc. Quote

Zacks Rank & Stocks to Consider

The company currently carries a Zacks Rank #3 (Hold).

Some better-ranked stocks in the basic materials space are Kinross Gold Corporation KGC, Franco-Nevada Corporation FNV and Barrick Gold Corporation GOLD.

Kinross has a projected earnings growth rate of 41.2% for 2020. The company’s shares have surged 94.6% in a year. It currently flaunts a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Franco-Nevada has a projected earnings growth rate of 15.9% for 2020. It currently carries a Zacks Rank #2 (Buy). The company’s shares have rallied 76.5% in a year.

Barrick Gold currently has a Zacks Rank #2 and a projected earnings growth rate of 51% for 2020. The company’s shares have gained 92.2% in a year.

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