DuPont de Nemours Increases Profit Forecast
DuPont de Nemours (NYSE:DD) raised its full-year profit forecast above Street estimates on Tuesday after the industrial materials maker beat third-quarter earnings target on strong demand for electronics and artificial intelligence-based technology.
Key Highlights
- New orders improved in the U.S. manufacturing sector in September, primarily driven by an AI surge and increased demand from China.
- DuPont raised its profit target for a third time, benefiting from falling interest rates and lower material prices.
Financial Performance
- DuPont's electronics and industrial unit, the largest in terms of turnover, reported a 13.4% rise in third-quarter net sales.
- Overall sales in the Asia-Pacific markets jumped 8% from a year earlier, while U.S. markets increased by 2%.
Projections
- The company raised its 2024 adjusted earnings forecast to around $3.90 per share, up from the previous forecast of $3.70 to $3.80 and above analysts' expectations of $3.77, according to data compiled by LSEG.
- However, DuPont estimates net sales to be around $12.37 billion for the year, below the lower end of its earlier range of $12.40 billion to $12.50 billion, with analysts expecting $12.44 billion.
- The company anticipates normal seasonal declines in electronics and construction markets in the fourth quarter.
Q3 Results
- For the third quarter, DuPont reported an adjusted profit of $1.18 per share, well above analysts' average expectation of $1.03.
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