The Gory Details on DuPont's Double Miss

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DuPont (NYS: DD) reported earnings on Oct. 23. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended Sep. 30 (Q3), DuPont missed estimates on revenues and missed estimates on earnings per share.

Compared to the prior-year quarter, revenue shrank significantly and GAAP earnings per share dropped significantly.


Margins dropped across the board.

Revenue details
DuPont tallied revenue of $7.39 billion. The 12 analysts polled by S&P Capital IQ foresaw net sales of $8.17 billion on the same basis. GAAP reported sales were 21% lower than the prior-year quarter's $9.34 billion.

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
EPS came in at $0.44. The 17 earnings estimates compiled by S&P Capital IQ forecast $0.49 per share. GAAP EPS of $0.01 for Q3 were 98% lower than the prior-year quarter's $0.48 per share.

Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 22.0%, 330 basis points worse than the prior-year quarter. Operating margin was 4.6%, 390 basis points worse than the prior-year quarter. Net margin was 0.1%, 470 basis points worse than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $7.80 billion. On the bottom line, the average EPS estimate is $0.04.

Next year's average estimate for revenue is $37.60 billion. The average EPS estimate is $3.45.

Investor sentiment
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 1,690 members out of 1,799 rating the stock outperform, and 109 members rating it underperform. Among 473 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 460 give DuPont a green thumbs-up, and 13 give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on DuPont is outperform, with an average price target of $56.13.

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The article The Gory Details on DuPont's Double Miss originally appeared on Fool.com.

Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor ofMotley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. The Motley Fool has no positions in the stocks mentioned above. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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