DuPont Increases Sales but Misses Revenue Estimate

DuPont (NYSE: DD) reported earnings on July 24. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended June 30 (Q2), DuPont missed estimates on revenues and met expectations on earnings per share.

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

Margins shrank across the board.

Revenue details
DuPont notched revenue of $11.01 billion. The 14 analysts polled by S&P Capital IQ looked for revenue of $11.25 billion on the same basis. GAAP reported sales were 6.4% higher than the prior-year quarter's $10.38 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 $1.48. The 17 earnings estimates compiled by S&P Capital IQ averaged $1.46 per share. GAAP EPS of $1.25 for Q2 were 3.1% lower than the prior-year quarter's $1.29 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 30.5%, 20 basis points worse than the prior-year quarter. Operating margin was 15.0%, 30 basis points worse than the prior-year quarter. Net margin was 10.7%, 100 basis points worse than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $9.44 billion. On the bottom line, the average EPS estimate is $0.65.

Next year's average estimate for revenue is $40.76 billion. The average EPS estimate is $4.24.

Investor sentiment
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 1,667 members out of 1,777 rating the stock outperform, and 110 members rating it underperform. Among 456 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 443 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 $57.88.

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