DuPont de Nemours Warns of Earnings Shortfall

DuPont de Nemours Inc. (NYSE: DD) shares are experiencing a significant drop in premarket trading, plunging 9% to a 2 1/2-month low. The materials science company attributes this decline to additional inventory destocking and continued weakness in China, resulting in lower volumes.

First-Quarter Earnings Outlook

The company anticipates a decrease in first-quarter adjusted earnings per share, expecting it to range from 63 cents to 65 cents. This is in stark contrast to the 84 cents earned during the same period last year. Furthermore, this forecast falls well below the current FactSet consensus of 88 cents.

Sales Projections

Revenue is also expected to decline for the first quarter, falling from $3.02 billion to $2.8 billion. This projection is below the FactSet consensus of $3.04 billion.

Fourth-Quarter Estimates

For the fourth quarter, DuPont forecasts adjusted EPS of 85 cents to 87 cents and sales of approximately $2.9 billion. This is slightly below the FactSet consensus of EPS of 85 cents and sales of $3.0 billion.

Goodwill Impairment Charge

DuPont reveals plans to record a goodwill impairment charge of $750 million to $850 million in the fourth quarter. This impairment charge is associated with the merger between Dow and DuPont.

Full Results

The company will release its full fourth-quarter results on Feb. 6.

While DuPont’s stock has gained 2.6% over the past three months through Tuesday, it now faces a significant setback, contrasting with the 14.5% rally of the broader S&P 500 index.

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