Eric Volkman, The Motley Fool
3 min read
The chemical industry is in a prolonged global slump these days, so it was heartening to learn that DuPont (NYSE:DD) had a beat-and-raise third quarter despite that considerable challenge. The veteran American chemical company posted its third-quarter results Tuesday morning, and the reaction to them was strongly positive — so much so that its stock closed the day almost 9% higher.
Beating and raising
DuPont also posted strong growth in key fundamentals. Its net sales for the quarter rose by 4% year over year to just under $1.87 billion, while net income from continuing operations under generally accepted accounting principles (GAAP) surged by 68% to $171 million. Non-GAAP (adjusted), per-share profitability also bounced, improving by 62% to $2.09.
Missed AI’s “Act 1”? Act 2 Could Be 16x Bigger. Most investors think they missed the AI boat because they didn’t buy Nvidia in 2005. But according to our analysts, we’re only at the end of “Act 1″—the R&D phase. “Act 2” is the global rollout. Continue »
Image source: Getty Images.
With those results, the company edged past the average analyst estimate of $1.84 billion for revenue. It notched a more convincing bottom-line beat, as those pundits were collectively modeling an adjusted earnings per share (EPS) figure of $1.86.
Compounding the two beats, DuPont also substantially raised its bottom-line guidance for the entirety of 2026. Management now believes the company’s adjusted EPS will come in at $7.47 to $7.52, well up from its preceding range of $7.17 to $7.32. It didn’t tweak its net sales projection much; it has been narrowed to roughly $7.19 billion, down from a range of $7.16 billion to $7.19 billion.
Success with selected segments
DuPont posted strong showings in the healthcare, aerospace, and industrial water client segments. These made up for sluggishness in the lines most exposed to the downcycle.
DuPont’s management has proven very nimble in divesting businesses subject to the cycle and in concentrating on segments with resilient demand. This has rightfully made investors significantly more bullish on its prospects, although I’d caution that the overall market remains weak. On Tuesday, the stock approached its one-year high, but I suspect it could top it soon.
Should you buy stock in DuPont de Nemours right now?
Before you buy stock in DuPont de Nemours, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and DuPont de Nemours wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
