What to Look For in DowDuPont’s Q3 Report

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DowDuPont Inc. (NYSE: DWDP) is set to report its third-quarter financial results before the markets open on Thursday. Thomson Reuters consensus estimates call for $0.71 in earnings per share (EPS) and $20.23 billion in revenue. In the same period of last year, it EPS came in at $0.55 on $18.29 billion in revenue.

When Dow Chemical and DuPont announced their plans to merge late in 2015, part of the plan involved breaking up the merged firm, now known as DowDuPont, into three separate companies. On Monday morning, the firm announced the executive leadership of two of the new companies.

Current CEO Ed Breen will assume the role of executive chair of DuPont, the company that is to be created out of the existing Specialty Products division. Marc Doyle, currently chief operating officer (COO) of the division, will become the CEO. DowDuPont’s Agriculture division will get a new name, Corteva Agriscience, and be headed by James Collins Jr., currently the COO of the division.

DowDuPont already announced that its Material Sciences division will be spun off into a third company to be called Dow, and it will be headed by the division’s current COO, Jim Fitterling.

The spin-off of the Materials Sciences division is expected to be completed by April 1 and the other two spin-offs are expected to be done by June 1. All three are tax-free to investors.

Excluding Wednesday’s move, DowDuPont has underperformed the broad markets, with its stock down over 26% in the past 52 weeks. In just 2018 alone, the stock is down roughly the same amount.

A few analysts weighed in on DowDuPont ahead of the report:

  • Stephens has a Hold rating with a $63 price target.
  • Deutsche Bank has a Buy rating and a $72 price target.
  • Citigroup has a Buy rating with a $74 price target.

Shares of DowDuPont were last seen up about 1.5% on Wednesday, at $53.42 in a 52-week range of $51.32 to $77.08. The consensus price target is $78.55.